Tejas Networks makes muted debut

Bengaluru: Shares of networking company Tejas Networks made a muted debut on the BSE. They listed at the upper end of the IPO price of Rs 257, touched a high of Rs 271, before closing at Rs 263.30, up 2.45% on the BSE on Tuesday.

The IPO, sold between June 14 and June 16 in the ₹250-257 range, was subscribed 1.88 times, which was modest compared to several IPOs in recent times from Bengaluru-based companies such as Quess Corp and Shankara Building Products.

The company, funded early on by Indian American investor and entrepreneur Gururaj Deshpande, raised about Rs 450 crore from the offering.

The company, founded by tech professionals Sanjay Nayak, Kumar Sivarajan and Arnob Roy, is into developing and selling high-performance products to telecom service providers, utility companies, defence firms and government entities, among others. It has presence in over 60 countries.

It plans to use the proceeds for raising working capital, capital expenditure and for other general purposes. Tejas reported a profit of Rs 63.2 crore on revenue of Rs 878 crore for the fiscal ended March 31.