Tejas hits new high and 5% LC

Tejas Networks, which had closed yesterday at Rs.419.55, within seconds of opening, almost hit the 5% UC of the day (Rs.440.50) at Rs.439 - a new 52 week high and then slipped to hit the 5% LC of the day at Rs.398.60.

The 5% UC is probably the continuing reaction to Tata Sons' subsidiary Panatone Finvest picking up a 8% stake in the company on 2nd August and the plan it to acquire a controlling stake in Tejas. This follows the preferential allotment of 16.8% of Tejas to Panatone Finvest based on a shareholder agreement dated July 29. Prior to this, Cascade Capital Management Mauritius had already sold 15.49% of its 17.64% holding in Tejas to Panatone through a block deal on July 30. The open offer by Tata Sons to buy 26% through an open offer starts on the 23rd of Sept and closes on 6th Oct.

All was hunky dory till the news of the Taliban taking over Kabul broke yesterday. This puts in jeopardy the future of its multi-year contract signed with Asia Consultancy Group for supply of network gear. This was to be used for setting up a high-capacity national backbone and packet access network in Afghanistan.  This news led to the stock hitting the 5% LC.