Tejas Networks shares end with 2.5% gain in stock mkt debut

MUMBAI: Shares of Tejas Networks ended 2.5% higher over the issue price of ₹257 in its debut trade on Tuesday.

The stock closed the day at ₹263.30, up 2.45% against the issue price on BSE. During the day, it gained 5.44% to ₹271 after listing at ₹257.

On the NSE, shares of the company went up 2.52% to end at ₹263.50.

In terms of volume, 24.23 lakh shares of the company were traded on BSE and over 1 crore shares changed hands on NSE during the day.

The company’s current market valuation is ₹2,357.80 crore.

Its IPO was oversubscribed 1.88 times, with qualified institutional buyers’ (QIBs) portion getting oversubscribed 2.16 times, non-institutional investors 48% and retail investors 3.10 times.

The offer, for which the price band was fixed at ₹250-257 per share, was open for bidding from June 14-16.

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 secondlargest optical networking products company in India.

Its revenue grew to ₹878 crore in FY2016 from ₹369 crore in FY2013, clocking a four-year compounded annual growth rate of 24.2%.

In 2016-17, it reported a net profit of ₹63 crore, against a loss of ₹79 crore in 2012-2013. Ebitda (earnings before interest, tax, depreciation and amortisation) margins have also improved to 19.8% in fiscal year 2017 from 12% in fiscal year 2013.