TATA GROUP'S Firm TEJASNET Future Looks Bright

Tejas Networks Ltd (NS:TEJS) is an optical, broadband, and data networking Products Company based in India. The company designs develop and sell its products to telecom service providers, internet service providers, utilities, and security and government entities in 75 countries. The company has built many IPs in multiple areas of Telecom networking and has emerged as an exporter to other developing countries including Southeast Asia and Africa.

TEJASNET went public on BSE and NSE in June 2017 with a valuation of Rs 2301 crore (23,010,000,000). On 29 July 2021, TATA SONS, through its subsidiary PANATONE FINVEST LIMITED, initiated an investment in TEJASNET to buy a 43.35% stake for Rs 1884 crore through shares and warrants. TEJASNET is looking to use TATA GROUP’S backing to expand its telecom products portfolio.

TEJASNET also has products created on 10G-PON technology, and its equipment is upgradable to 5G. They help private telecom operators in India by supplying GPON equipment. They are partnering with system integrators to bid for BSNL’s 4G tender and investing in 4G wireless. TEJASNET also supports BSNL’s optical transmission network. The company is supplying its products to Bharti Airtel (NS:BRTI) for supporting optical networks and implementing 5G backhaul, B2B services, and broadband applications. TEJASNET also supplies GPON equipment to private telecom operators in India. TEJAS' GPON solution has been deployed in BharatNet, it is the world's largest Greenfield rural broadband rollout delivering high-speed Internet services to more than 200 million people. TEJAS Equipment has helped provide broadband internet to all of India's gram panchayats and has helped connect 40,000 villages so far. TEJAS’ broadband products are helping 70% requirements of the BharatNet project.

TATA GROUP'S firm TEJASNET will acquire a 64.40% stake in wireless solutions company SAANKHYA LABS for Rs 283.94 crore in an all-cash deal. The initial acquisition of SAANKHYA’S shares is expected to close within the next 90 days, TEJASNET said in a statement. TEJASNET, upon procuring all necessary consents and approvals, also intends to proceed with acquiring the balance 35.60% shares through a merger process or a secondary acquisition. The acquisition comes at a time when the TATA GROUP is looking to set up a $300 million semiconductor manufacturing facility and is in talks with various state governments to identify the land. The facility will be used for outsourced semiconductor assembly and testing. This acquisition shows continued commitment to expanding wireless product offerings to address the growing market opportunity. SAANKHYA'S PRODUCTS would complement existing 4G/5G Radio Access Network (RAN) products and position well for the emerging opportunities in the O-RAN and 5G broadcast space.

TEJASNET is currently available with a face value of INR 10. Yesterday's close price of TEJASNET was INR 219.95 per share and its TTM FY 2022 EPS is 2.65 and it is trading at a PE of 176.55. TEJASNET 52 Week High price was INR 578.45 and 52 Week Low price was INR 157.00.