Tejas Networks hits 5% upper circuit as firm to buy 64% in Saankhya Labs

Tejas Networks share hit the upper circuit of 5 per cent in early trade today after the Tata Group firm said it would buy 64.40 per cent stake in wireless solutions company Saankhya Labs for Rs 283.94 crore in an all-cash deal.

Tejas Networks share zoomed 5 per cent to Rs 424.90 against the previous close of Rs 404.70 on BSE. The stock has gained 11.46 per cent in the last three days. Tejas Networks stock opened 5 per cent higher today. The market cap of the firm rose to Rs 4,861 crore.

Total 0.17 lakh Tejas shares changed hands amounting to a turnover of Rs 70.55 lakh on BSE. The stock hit a 52-week high of Rs 570.20 on October 5, 2021, and a 52-week low of Rs 156 on March 31, 2021.

The initial acquisition of Saankhya's shares is expected to close within the next 90 days, Tejas Networks said.

"Tejas Networks, upon procuring all necessary consents and approvals, also intends to proceed with acquiring the balance 35.60 per cent shares through a merger process or a secondary acquisition," the statement said.

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Acquisition of Saankhya is in line with Tata Group's interest to foray in semiconductor business.

"This acquisition shows our continued commitment to expand our wireless product offerings to address the growing market opportunity. Saankhya's products would complement our existing 4G/5G Radio Access Network (RAN) products and position us well for the emerging opportunities in the O-RAN and 5G broadcast space," Tejas Networks CEO and MD Sanjay Nayak said.

Saankhya has 73 international patents (41 granted, 32 filed), and it is building software defined radios (SDR) powered by its own chipsets.

Tejas Networks reported a 363.27 per cent fall in Q3 net profit to a loss of Rs 24.30 crore against Rs 9.23 crore profit in the December quarter of the previous fiscal.

Net sales in the December quarter fell 20.63 per cent to Rs 107.06 crore against Rs 134.88 crore in the corresponding quarter of the previous fiscal.