Here's why Tejas Networks share price rose 7% in trade on December 12

Shares of Tata Group’s telecommunications and internet-related services provider Tejas Networks were in high demand on the bourses in the week’s last trading session after the company announced that it has emerged as the largest supplier by the number of packages for BharatNet Phase-III, a flagship program by the Government of India.

 

Following the news, the company’s share price climbed 7.29 per cent to log an intraday high of ₹499.95 per share on the NSE. Despite the gains, the counter is still nearly 63 per cent below its 52-week high of ₹1,345.85, which was reached last year on December 11 on the NSE.

 

 

That said, the counter continued to see strong demand from investors on Friday, December 12. At 10:02 AM, Tejas Networks shares were seen exchanging hands at ₹495.65 per share, up 6.37 per cent from its previous close of ₹465.95 per share on the NSE. The benchmark Nifty50, meanwhile, was quoted at 26,002, higher by 103 points or 0.40 per cent. A combined total of 2.9 million shares of the company, worth around ₹192 crore, had exchanged hands on the BSE and NSE so far today.  CATCH STOCK MARKET UPDATES TODAY LIVE

Tejas Networks: Largest package supplier of BharatNet Phase-III

Tejas Networks announced that the company has been awarded IP routing equipment purchase contracts for 7 of the 12 BharatNet Phase-III packages announced to date, thereby emerging as the largest supplier by the number of packages.

 

BharatNet is a flagship program by the Government of India that aims to create a transformative impact in rural India by bridging the digital divide between urban and rural communities. The objective of this phase is to create a robust, reliable, and scalable middle-mile network for BharatNet using IP-MPLS technology to ensure high-quality broadband access for every rural citizen.

 

As part of this nationwide deployment, Tejas will be delivering its state-of-the-art TJ1400 family of next-generation access and aggregation routers, which are indigenously designed and developed by the company. Tens of thousands of these carrier-grade systems are already operational in high-availability, mission-critical networks. In BharatNet Phase III, TJ1400 products will be deployed in 9 states (Bihar, Goa, Karnataka, Kerala, Madhya Pradesh, Uttarakhand, Arunachal Pradesh, Nagaland, Manipur) and 5 union territories. Altogether, over 50,000 TJ1400 routers will be deployed across 57,000 Gram Panchayats and 2,000 blocks in the country, according to the exchange filing submitted by the company.  ALSO READ | Larsen & Toubro gains 3%, nears record high; why infra stock in focus? 

Commenting on the development, Sanjay Malik, chief strategy and business officer of Tejas Networks, said, “We are delighted to maintain our track record of being a leading telecom equipment partner for BharatNet deployments, as in the previous phases of this prestigious program. It is a reflection of our growing stature as a world-class telecom OEM (original equipment manufacturer) with highly differentiated, next-generation products that meet global quality and performance standards.”

 

Tejas is partnering with five leading PIAs—NCC, Polycab, Invenia-STL Networks, GR Infraprojects, and ITI—for the BharatNet Phase III deployment.