Tejas network to enter capital market tomorrow

13 June, Bengaluru

Achieving a significant milestone in itsgrowth as a technology startup, Tejas Networks Limited a citygrown company will enter the market to raise approximately Rs 777crore from its Initial Public Offer (IPO) opening tomorrow.

The 17 year-old company which has now become the second biggestsupplier for optic fibre connectivity in the country, competingamong the multinational industrial giants will raise a fresh issueof Rs 450 crore with the balance being stocks off-loaded byshareholders, including some venture capital companies that had beenhand holding the company since inception in the year 2000.

Tejas Networks MD and CEO Sanjay Nayak, talking to newsmen heretoday, said that the venture capital companies would be offloadingonly around 16 per cent of their stake and this showed the trustthey had in the company.

The issue price band ranged between Rs 250 and Rs 257 per equityshare and it would close on June 16.

Nayak said that the company plans to strengthen its balancesheet as it aimed to enter the big league shedding its Medium scalestructure.

The company which had a turnover of over Rs 800 crore last fiscalhad doubled its revenue in two years with two thirds of its revenuecoming from India and the rest from exports to over 60 countries.