Shares of Tejas Networks were locked in upper circuit for the second straight day, up 10 per cent at Rs 201, also its 52-week high on the BSE in Thursday's session after the government approved a Rs 12,195 crore production-linked incentive (PLI) scheme for telecom gear manufacturing in India. The stock has gained 20 per cent in the past two trading days, surging 44 per cent thus far in the month of February.
Tejas Networks designs, develops and sells high-performance and cost-competitive networking products to telecommunications service providers, internet service providers, utilities, defence and government entities in over 75 countries. Tejas' products utilise programmable, software-defined hardware architecture with a common software code-base that delivers seamless upgrades of new features and technology standards. It is ranked among top-10 suppliers in the global optical aggregation segment and has filed over 349 patents.
The PLI scheme for telecom gear will cover manufacturing of equipment such as core transmission products, 4G, 5G radio access network and other wireless gear. Under the PLI scheme for telecom equipment, the government will give 4-6 per cent incentive to eligible companies on incremental sales of manufactured goods for five years. Micro, small and medium enterprises (MSMEs) will get a 4-7 per cent incentive in the first three years of production.
The PLI scheme for telecom gear will lead to an incremental production of around Rs 2.4 trillion, with exports of around Rs 2 trillion in the next five years. Key beneficiaries include Tejas Network and Sterlite Technologies, the brokerage firm ICICI Securities said in a note.
The stock of Sterlite Technologies was trading 3 per cent lower at Rs 203, after hitting a low of Rs 197 in intra-day trade today. It hit a 52-week high of Rs 212 on Wednesday when it rallied 12 per cent.