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Tejas Networks IPO Prospectus
What Are Analysts Saying?
Tejas Networks IPO: Subscribe to the issue with long term perspective
SPA Securities, 14 Jun 2017
At the upper end of the price band, the stock is available at P/E of 20.5x based on FY19E earnings, which is reasonable considering immense growth potential in India and leadership position in India. We recommend SUBSCRIBE to the issue with long term perspective.
Tejas Networks IPO: Hem Securities recommend to subscribe to the issue for long term
Hem Securities, 13 Jun 2017
According to Hem Securities, at price band of Rs 250-257, company is bringing the issue at p/e multiple of around 29 on FY17 Eps. Although company\'s business model looks quite attractive but looking after valuation, issue looks expensive at current level.
Long term investors may opt for the Tejas Networks IPO - SMC
SMC, 12 Jun 2017
Considering the P/E valuation on the upper end of the price band of Rs. 257, the stock is priced at pre issue P/E of 29.28x on its FY17 EPS of Rs. 8.78. Post issue, the stock is priced at a P/E of 36.40x on its EPS of Rs. 7.06.
Jainam Wealth recommend 'Avoid' on the Tejas Networks IPO
Jainam Research, 12 Jun 2017
Considering high working capital intensive nature, 58.81% of revenue contributed from top 5 clients, and 45.12% revenue contributed from PSU customers in India among others, Jainam are recommending investors to avoid the IPO.
Issue Details
Open Date: 14 Jun 17
Close Date: 16 Jun 17
Offer Price: Rs. 250
Issue Size: Rs. 450 Cr
Min Application Amount:
Rs. 13750
Min bid (No. of shares): 55
Listing Exchanges: BSE, NSE
About the Company
"Incorporated in year 2000, Tejas Networks Ltd is Bangalore based optical and data networking products company. Trjas design, develop and sell products to telecommunications service providers, internet service providers, utility companies, defense companies and government entities in India and over 60 countries. These products are used in building high-speed communication networks to carry voice, data and video traffic from fixed line, mobile and broadband networks over optical fiber.

Tejas Networks build hardware and software products related to optical and data networking. The hardware is build using modular approach and the software-defined architecture allows the company to remotely upgrade the hardware with new capabilities and features. Tejas Networks outsource most of its manufacturing to electronics manufacturing services companies.

Tejas Networks offer pay-as-you-grow business model where its clients purchase its products/services incrementally as needed.

Tejas Networks Ltd have filed 326 patent applications, with 198 filings in India, 87 filings in the United States and 6 filings in Europe, out of which 47 patents have been granted."
Objective of the Issue
"Objects of the Issue:

The Offer comprises the Fresh Issue and the Offer for Sale.

1. Offer for Sale - The company will not receive any proceeds from the Offer for Sale.

2. Fresh Issue - Company proposes to utilize the Net Proceeds towards funding the following objects:

A. Capital expenditure towards payment of salaries and wages of research and development team;
B. Working capital requirement; and
C. General corporate purposes."
Subscription Details
Investor Category No of times
Qualified Institutional Investor -
Non Institutional Investor -
Retail Investor -
Total -