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Tejas Networks IPO subscribed 1.88 times

Capital Market 

Receives bids for 3.21 crore shares

The initial public offer (IPO) of Tejas Networks received bids for 3.21 crore compared with 1.71 crore on offer, data on NSE showed. The IPO was subscribed 1.88 times. The price band for the IPO was fixed at Rs 250-257 per share. The IPO opened on 14 June 2017 and closed on 16 June 2017.

The qualified institutional buyers (QIBs) category was subscribed 2.16 times. The non institutional investors (NIIs) category was subscribed 0.48 times. The retail individual investors (RIIs) category was subscribed 3.10 times.

The objects of the issue were working capital requirement of around Rs 303 crore, capital expenditure towards payment of salaries and wages for R&D team of around Rs 45.29 crore and rest for general corporate purposes (over Rs 101 crore), apart from the benefits of listing the equity on the BSE and the NSE to enhance its visibility and brand image and provide liquidity to its existing shareholders.

Ahead of the IPO, the IPO committee of Tejas Networks raised Rs 349.50 crore by issuing 1.35 crore shares to eighteen anchor investors at Rs 257 per share.

Tejas Networks' consolidated net profit jumped 117.92% to Rs 63.22 crore on 39.96% rise in net sales to Rs 878.20 crore in the year ended 31 March 2017 (FY 2017) over FY 2016.

Incorporated in 2000, Bangalore-based Tejas Networks is an optical and data networking products company. The company designs, develops and sells products to telecommunications service providers, internet service providers, utility companies, defence companies and government entities in India and over 60 countries.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, June 19 2017. 10:29 IST