Tejas Networks shares close 2% higher on stock market debut

The Tejas Networks shares traded between the peak of Rs271 and the lowest of Rs257 on BSE. Photo: AFP

Mumbai: The shares of Tejas Networks Ltd opened marginally higher at Rs257 apiece, up 2.7% on the stock market debut on Tuesday. The Rs450 crore initial public offer (IPO) received a subscription of more than 1.88 times when it closed earlier this month.

The Tejas Networks shares closed at Rs263.30, 2.45% higher than its listing prices of Rs257.

Earlier in the day, the shares touched a high of Rs271 and a low of Rs257, respectively.

On 13 June, the telecom equipment maker said it raised Rs349.5 crore by selling shares to investors as part of the so-called anchor book allocation.

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

With a market share of 15%, Tejas Networks is the second-largest optical networking products company in India. Its revenue grew to Rs878 crore in FY2016 from Rs369 crore in FY2013, clocking a four-year compounded annual growth rate of 24.2%.

In 2016-17, it reported a net profit of Rs63 crore, against a loss of Rs79 cr