- Tejas Networks Ltd. listed at Rs 257 on the National Stock Exchange.
- The IPO had been subscribed 1.88 times.
- The Bengaluru-based company raised nearly Rs 350 crore from anchor investors.
Telecom equipment maker Tejas Networks Ltd. rose as much as 5 percent after listing at its issue price of Rs 257 per share on the National Stock Exchange of India and BSE.
The Bengaluru-based firm raised Rs 780 crore from the initial public offering, including Rs 350 crore from anchor investors. Price band for the initial public offer was fixed at Rs 250-257 per share and was open for bidding from June 14-16.
The issue was subscribed 1.88 times, with demand from qualified institutional buyers at 2.16 times the shares on offer. The retail portion was subscribed 3.1 times, while high net worth individuals subscribed 48 percent of the shares in their section.
The issue was managed by Axis Capital, Citigroup Global Markets Edelweiss Financial Services and Nomura.
More than 65 percent of the IPO proceeds will go towards working capital requirements. The rest of the proceeds will be spent on capital expenditure, debt reduction and research and development, Chief Executive Officer and Managing Director Sanjay Nayak told BloombergQuint.
“We plan to spend 8-9 percent of the total proceeds on R&D, the next focus will be on becoming a debt-free company and the third would be to expand in international markets,” Nayak said
The company plans to strengthen its balance sheet by scaling up its international operations. Its global business grew 70 percent last year and the company expects the momentum to continue.
“Winning in India is the gold standard in terms of being competitive,” he said. The other two geographies that the company is concentrating on include Southeast Asia and Africa. Indian IT services companies have helped the country build trust globally, and that will serve as the leverage point for indigenous technology equipment companies like his, Nayak added.
Tejas Networks became the ninth Indian company to list on the exchanges in 2017. BSE’s Central Depository Services (India) Ltd. and Eris Lifesciences Ltd. recently concluded their initial public offers and are pending listing.