Tejas Networks makes quiet debut, ends 2% higher against issue price

At 10:04 am; the stock was trading 1% higher at Rs 260 on NSE against its issue price of Rs 257.

Shares of Tejas Networks  debuted at Rs 257, its initial public offer (IPO) price on the National Stock Exchange (NSE) and BSE.

The stock settled at Rs 263, up 2.4% against its issue price.

The stock hit a high of Rs 264 in intra-day trade on NSE, while on BSE, it rose as much as Rs 266.

The company's initial public offer (IPO) was oversubscribed 1.88 times, with qualified institutional buyers' (QIBs) portion getting oversubscribed 2.16 times, non institutional investors 48% and retail investors 3.10 times. Price band for the offer was fixed at Rs 250-257 per share and was open for bidding from June 14-16.

Tejas Networks is an optical & data networking products Company that designs, develops & sells high-performance and cost-competitive products to telecommunications service providers, internet service providers, utility companies, defence companies and government entities.

The products are used to build high-speed communication networks that carry voice, data & video traffic from fixed line, mobile & broadband networks over optical fibre. Currently domestic business contributes 65% of the revenues.

The key clientele for Tejas includes BBNL, BSNL, PGCIL, RailTel, Airtel, Idea and Aircel. It also has an international clientele base in the form of OEMs such as Ciena, NEC and Sacofa (direct). In FY17, top five clients have contributed 58.2% to the revenues.