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Tejas Networks IPO subscribed 37% on day two

Capital Market 

The IPO receives bids for 62.99 lakh shares

The initial public offer (IPO) of Tejas Networks received bids for 62.99 lakh compared with 1.71 crore on offer, on the second day of bidding for the IPO today, 15 June 2017, data on NSE showed as at 16:30 IST. The IPO was subscribed 37%. The price band for the IPO has been fixed at Rs 250-257 per share.

The IPO opened yesterday, 14 June 2017 and closes tomorrow, 16 June 2017.

The offer comprises of fresh issue of Rs 450 crore. At the lower price band of Rs 250 per share, the issue size is 1.80 crore At a higher price band of Rs 257, the issue size works out to 1.75 crore The offer also comprises offer for sale of 1.27 crore At the lower price band of Rs 250 per share, the size works out to Rs 317.79 crore and at the higher price band of Rs 257, the issue size works out to Rs 326.69 crore.

The offer for sale of 1.27 crore is made by selling shareholders, comprising institutional investors Cascade Capital Management Mauritius, Sandstone Private Investments, Intel Capital (Cayman) Corporation, its senior management team and other individual shareholders.

The objects of the issue are 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. The allocation of over 22% of issue proceeds for general corporate purposes is unusually high.

Ahead of the IPO, the IPO committee of Tejas Networks allocated 1.35 crore to eighteen anchor investors at a higher end of IPO price band of Rs 257 per share aggregating Rs 349.50 crore.

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 (TN) is an optical and data networking products company. TN 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: Thu, June 15 2017. 16:40 IST