Tejas Networks IPO


Tejas Networks IPO

Tejas Networks IPO

Tejas Networks is an India-based optical and data networking products company with customers in over 60 countries. The company designs, develops and sells high-performance and cost-competitive products to telecommunications service providers, internet service providers, utility companies, defence companies and government entities (collectively, “Communication Service Providers”). Its products are used to build high-speed communication networks that carry voice, data and video traffic from fixed line, mobile and broadband networks over optical fibre. Its products utilise a programmable software-defined hardware architecture with a common software code-base that delivers an app-like ease of development and upgrades of new features and technology standards. Currently, India is its largest geographic segment (in terms of revenue) and it claims to be well-positioned to take advantage of the growth opportunities arising out of the Digital India and the Make-in-India programs of the Indian Government.

The company has invested heavily in research and development in order to grow through multiple technology cycles and is well-positioned to capitalize on the expected growth in optical capital expenditure globally. Driven by rising smartphone penetration and a massive increase in data traffic, global optical capital expenditure is expected to increase from US$14.6 billion in 2014 to US$17.9 billion in 2020. Further, optical equipment expenditure in India is expected to grow from US$391 million in 2014 to US$869 million by 2020, at a CAGR of 14.2%. For the year ended March 31, 2016, it was the second largest optical networking products company in terms of market share in India, with a market share of 15% in the overall optical networking market.

Tejas Networks IPO details
Subscription Dates 14 – 16 June 2017
Price Band INR250 – 257 per share
Fresh issue INR450 crore
Offer For Sale 12,711,605 shares (INR326.68 crore at upper band)
Total IPO size INR776.68 crore at upper band
Minimum bid (lot size) 55 shares
Face Value  INR10 per share
Retail Allocation 10%
Listing On NSE, BSE


Tejas Networks’ consolidated financial performance (in INR crore)

FY2013 FY2014 FY2015 FY2016 FY2017
Total revenue 369.3 423.0 386.8 627.5 878.2
Total expenses 325.1 328.1 318.3 514.4 704.0
Profit after tax -79.0 2.8 -17.9 29.0 63.2

Tejas Networks Ltd
J.P. Software Park, Plot No. 25, Sy. No. 13, 14, 17 and 18, Konnapana Agrahara Village, Begur Hobli,
Bengaluru – 560 100

Phone: +91 80 4179 4600
Fax: +91 80 2852 0201
Email: [email protected]
Website: www.tejasnetworks.com

Link Intime India Private Limited
C-13 Pannalal Silk Mills Compound,
LBS Marg, Bhandup (W), Mumbai – 400 078
Maharashtra, India

Phone: +91 22 2596 3838
Fax: +91 22 2594 6969
Email: [email protected]
Website: http://www.linkintime.co.in

Tejas Networks IPO allotment status is now available on Link Intime’s website. Click on this link to get allotment status.

Earnings Per Share (EPS): INR9.4

Price/Earnings (P/E) ratio: 26.6 – 27.3

Return on Net Worth (RONW): 12.63%

Net Asset Value (NAV): INR70.78 per share

Tejas Networks IPO Subscription Details

Category Shares offered Subscription (No. of times, at 5 PM) 
Day 1 Day 2 Day 3
QIB 9,434,105  0.06 0.32 2.16
NII 4,606,740 0.00 0.02 0.48
Retail 3,071,160 0.38 1.09 2.97
Total 17,112,005 0.10 0.38 1.85

IPO Opening Date: 14 June 2017

IPO Closing Date: 16 June 2017

Finalisation of Basis of Allotment: 21 June 2017

Initiation of refunds: 22 June 2017

Transfer of shares to demat accounts: 23 June 2017

Listing Date: 27 June 2017

Listing Price on NSE: INR257 per share (no change from IPO price)

Closing Price on NSE:  INR262.6 per share (up 2.2% from IPO price)



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