Multibagger Tata Group stock hits upper circuit for fifth straight session. Here's why
Premium- The multibagger stock has rallied more than 182% in a year's period, whereas is up about 15% in 2022 so far
Shares of Tejas Networks hit the upper circuit level of 5% to ₹491 apiece on the BSE in Tuesday's deals. The multibagger stock has hit upper circuit level for the fifth consecutive session after the Tata Group company announced its plans to acquire Saankhya Labs, to enhance its wireless products offering.
Last week, Tejas Networks said that it has signed definitive agreements to acquire 64.40% of shares of Saankhya Labs Private Ltd. Bangalore for ₹283.9 crore in cash. The initial acquisition of Saankhya shares is expected to close within the next 90 days. Saankhya Labs Limited will become a majority-owned subsidiary of Tejas Networks Ltd.
The remaining 35.6% stake in Saankhya will be acquired through a merger process and the company expects to file merger scheme within the next 120 days, it added in the exchange filing.
“Acquisition of Saankhya will bring in a strong domain expertise and IPR in wireless communication (5G, Broadcast, Satellite) as well as semiconductor design. The company will be complement in terms of product/technology areas and customer access. Tejas, as a larger platform, will derive synergies in R&D, Sales and SCM/Operations," Tejas Networks added.
Founded in 2007, Saankhya Labs has developed a wide range of system and semiconductor products for cellular Wireless, Broadcast radios and Satellite communication ground-terminal, which are deployed by customers in India and in international markets.
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Tejas Networks shares have given multibagger return in a year by rallying over 182% in a year's period, whereas, the Tata Group stock is up about 15% in 2022 (year-to-date or YTD) so far. In July last year, Tata Sons acquired a controlling stake in Tejas Networks, which develops and sells networking products to telecommunications service providers, internet service providers, utilities, defence and government entities.
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