Tejas Networks was locked in an upper circuit of 5% at Rs 424.9 after the company signed a definitive agreement to acquire 64.4% stake in Saankhya Labs Private Limited for a cash consideration of Rs 283.94 crore.
The company will buy 62,51,496 equity shares of Saankya Labs, post acquisition Tejas Networks will hold 64.4% equity share capital in the company.The initial acquisition of shares is likely to be completed within next 90 days. The company also intends to proceed with acquiring the balance 35.6% shares through a merger or secondary acquisition.
Purchase of 62,51,496 equity shares of the company at a price of Rs. 454.19 per equity share for a total cash consideration of approximately Rs. 283.94 crore.
Sanjay Nayak, CEO & MD of Tejas Networks said, "We are committed to our vision to create a global telecom equipment company from India, which will provide an end-to-end stack of world-class products and solutions based on latest technologies and customer requirements. This acquisition shows our continued commitment to expand our wireless product offerings to address the growing market opportunity. Saankhya's products would complement our existing 4G/5G Radio Access Network (RAN) products and positions us well for the emerging opportunities in the O-RAN and 5G broadcast space. We expect that this acquisition will accelerate our roadmap to create a full range of trusted and secured, world-class telecommunication products."
Saankhya Labs is a wireless communication and semiconductor solutions firm with wide range of products for 5G-based cellular wireless, broadcast radios and satellite communication. The company had a consolidated turnover of Rs 73.22 crore for the nine months ended December 2021. Saankhya has an IPR portfolio and 73 international patents (41 granted, 32 filed), Saankhya is a in building software defined radios (SDR), powered by its own SDR chipsets.
Shares of Tejas network extended their winning run to third trading session in a row. The counter has surged 11.46% in three trading days from its previous closing low of Rs 381.2 posted on 28 March 2022.
Tejas Networks designs, develops and sells high-performance networking products to telecommunications service providers, internet service providers, utilities, defence and government entities in over 75 countries.
On a consolidated basis, the company reported a net loss of Rs 24.3 crore in Q3 FY22 as compared to a net profit of Rs 9.23 crore posted in Q3 FY21. Net sales declined 20.6% to Rs 107 crore in Q3 FY22 over Q3 FY21.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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