Tata’s newest acquisition Tejas Networks takes off on bourses


Photo Credit Twitter Tejas Networks

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By S Jha

New Delhi, September 1: On a day when the Indian equity market went into wild swings, Tata’s newest acquisition Tejas Networks stood tall, clocking day’s gain of 6.77 per cent, to close at a record high.

Tejas Networks share is buzzing on the Indian bourses following the 5G rollout buzz, with the company claiming to have formidable know-how in the segment.

Tata Sons had acquired Tejad Networks last year. The company, which is a blend of hardware and software, was founded by some of the brightest IT entrepreneurs.

Mukesh Ambani, the head of Reliance Industries, recently announced that Jio will soon be rolling out the 5G telecom services. The telecom sector is buzzing with the big event and there are anticipations that Jio’s peers too will join the race for the rollout of 5G telecom services.

In the previous bull run last year, Tejas Networks share price had reversed from the 560 level to retrace back to 460-480 levels where it consolidated for a few months to finally break out, in the language of the technical chartists, to climb to an all-time high of Rs 673 during the day on Thursday and closing at Rs 657.

The company has reduced losses significantly in the last quarter. Against a loss of Rs 88.11 crore in the March quarter, Tejas Networks reported a net loss of Rs 7.32 crore in the June quarter.

Meanwhile, Tata Sons have already appointed its nominees on the board of Tejas Networks, which has further boosted the confidence of the investors.

Its revenue for the past few quarters were stagnant on account of the semi-conductor chip shortages.

By acquiring Saankhya Labs in March this year, the management of Tejas Networks appears to have given the message that the company would seek a strong presence in the wireless products space.

N Ganapati Subramaniam, the chairman of Tata Elexi, is now the non-executive chairman of the company, which was founded in 2000 in Bangalore.

Tejas Networks also has former ambassador Leela K Ponappa as non-executive independent director in its Board.

Sanjay Nayak is the co-founder of Tejas Networks.

The company is eyeing growth momentum by playing key role in the development of semi-conductor solutions by signing a pact with Tata Motors and Japan’s Renesas Electronics

Incidentally, Bangalore is emerging as key destination for India’s bid to gain self-reliance in semi-conductor design and production of chips used in the automobiles, electronic goods, defence equipment, including radars.

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