Tejas Networks rises on market debut

Tejas Networks rises on market debut

The recently concluded Initial Public Offering (IPO) of the second largest optical networking products company, had opened between June 14 to June 16 and the shares were priced in the range of Rs 250 to Rs 257. This IPO consisted of issuing equity shares of face value of Rs 10 each for cash, comprising of a fresh issue of equity shares aggregating up to Rs 4,500 million and an offer for sale of up to 12,711,605 equity shares by selling shareholders. The issue was subscribed 1.88 times.

Its products are used to build high-speed communication networks and its domestic business contributes towards 65 percent of its revenues. Tejas Networks shares today listed at Rs 257 on the Bombay Stock Exchange, equal to the higher end of the IPO price band, after the IPO had got subscribed by a decent 1.87 times.

Bengaluru-based Tejas Networks plans to use the proceeds for raising working capital, capex and for general purposes.

At the listing price, the stock was valued at 14.1 times EV/EBITDA, and 24.7 times P/E for FY17 on a post-dilution basis.

The company’s market valuation stands at Rs 2,382.42 crore. However, the company’s bottom line revenue remained volatile even during this period. In FY15, the company reported a net loss of Rs 17.9 crore due to R&D investments.

Tejas designs, develops and sells high-performance and cost-competitive products to telecommunications service providers, internet service providers, utilities, defence and government entities in over 60 countries, according to the company’s website.