Tejas Networks has filed Draft Red Herring Prospectus (DRHP) with capital markets regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). The IPO comprises fresh issue of shares worth Rs 450 crore and an offer for sale of 1.27 crore scrips by shareholders.
Also, the company plans to raise about Rs 150 crore by selling 60 lakh shares ahead of the IPO. If the pre-IPO placement is completed, the company would reduce the IPO size.
The company will use the issue proceeds for capital expenditure towards payment of salaries and wages for research and development team, working capital requirement and general corporate purposes.
Axis Capital, Citigroup Global Markets India, Edelweiss Financial Services and Nomura Financial Advisory and Securities (India) are managing the IPO. The equity shares are proposed to be listed on the BSE and the NSE.
Tejas Networks is optical networking products company. It caters to telecommunications operators, internet service providers, utilities, defence and government entities in over 60 countries.