From Tata Consultancy Services (TCS), Tata Steel, Tata Motors, to Tata Power, all Tata group stocks have given positive returns so far in the calendar year 2023. With a strong return of 83% in the last eight months, Tejas Network, a lesser-known or the hidden Tata Group company, has emerged as one of the top gainers in the list. The share price of the broadband, optical and wireless networking company touched a lifetime high of ₹935 in intraday trade on the BSE today, staging a strong rebound from its 52-week low of ₹510.05 touched on January 30, 2023.

Shares of Tejas Networks rallied as much as 4.7% in intraday trade on the BSE today after the company informed exchanges that it has received an advance of ₹750 crore from sister company TCS for the BSNL project. The fund will be mobilised towards the supply of radio access network equipment for BSNL’s Pan-India 4G/5G network.

“Further to our letter dated August 16, 2023, we have received today (September 07, 2023) the mobilisation advance of ₹750 crore from Tata Consultancy Services Limited, towards supply of Radio Access Network equipment for BSNL’s Pan-India 4G/5G network,” Tejas Networks said in a BSE filing on September 7.

On August 16, 2023, Tejas entered into a deal with TCS for supply, support and annual maintenance services for Radio Access Network (RAN) equipment for BSNL’s Pan-India 4G/5G network. The total value of the deal is ₹7,492 crore, which involves supplying 4G/5G RAN equipment for approximately 100,000 sites. The contract will be executed during the calendar years 2023 and 2024.

Tejas Networks designs and manufactures high-performance wireline and wireless networking products for telecommunications service providers, internet service providers, utilities, defence and government entities in over 75 countries. Tejas Networks is a part of the Tata Group, with Panatone Finvest Ltd. (a subsidiary of Tata Sons Pvt. Ltd.) being the majority shareholder.

Tejas Networks shares gained momentum after Tata Sons acquired a controlling stake in the company. In July 2021, Panatone Finvest signed a definitive agreement to acquire a 43.3% stake in Tejas Networks for nearly ₹1,850 crore. As per the latest shareholding pattern available on the BSE, Panatone Finvest holds a 55.97% stake in the company.

With a market capitalisation of ₹15,325 crore, the share price of ace investor Vijay Kedia-backed telecom gear firm has risen over 250% post stake buying by Tata Group. It has given 42.6% returns in the last one year, while it climbed 49% in the calendar year 2023. In the past six months, the counter added 44%, while it rose over 8% in a month.

For the April-June quarter of FY24, Tejas Networks reported a net loss of ₹27 crore, compared to a loss of ₹11.5 crore in March FY23, and a loss of ₹6.3 crore during the same quarter last year. The net revenue stood at ₹188 crore in Q1FY24, up 46.3% from the year-ago period, while it declined 37% sequentially.

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