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Tejas IPO subscribed 38% on Day 2

LiveMint logoLiveMint 15-06-2017 Swaraj Singh Dhanjal

Mumbai: The initial public offering (IPO) of telecom equipment maker Tejas Networks Ltd received subscription of 38% on the second day of the share sale, data from the stock exchanges showed Thursday.

As of 5pm, the portion of the Tejas IPO reserved for institutional investors was subscribed 33%, while the portion reserved for high net-worth individuals and retail investors were subscribed 2% and 1.1 times, respectively.

The initial public offering closes on 16 June.

Tejas Networks has fixed a price band of Rs250-257 per share for the IPO.

The IPO will see the company raise Rs450 crore of primary capital through a fresh issue of shares, while some existing shareholders of the firm will sell shares worth Rs326 crore through an offer for sale.

Investors selling shares in the IPO include Cascade Capital Management Mauritius, India Industrial Growth Fund (Frontline Strategy), Intel Capital and Sandstone Capital. Other investors in the company include the likes of Goldman Sachs, Mayfield and Samena Capital.

Tejas is an optical and data networking products company with customers in over 60 countries. It designs, develops and sells high-performance and cost-competitive products to telecommunications service providers, Internet service providers, utility companies, defence firms and government entities.

Its products find application in building high-speed communication networks that carry voice, data and video traffic from fixed line, mobile and broadband networks over optical fibre.

On Tuesday, Tejas Networks raised Rs349.5 crore by selling shares to investors as part of the so-called anchor book allocation, a day ahead of the opening of its IPO.

The anchor book is that portion of an IPO that bankers can allot to institutional investors on a discretionary basis. Anchor book subscription opens a day before the launch of an IPO and acts as an indicator of institutional investor interest.

In a statement, Tejas Networks said 13.59 million shares were allotted to 17 anchor investors at Rs257 each.

So far this year, eight companies have raised Rs6,335.83 crore through IPOs, while last year 26 companies raised Rs26,493.84 crore through this route.

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