Tejas Networks IPO to hit markets soon

Data networking product company Tejas Networks filed draft red herring prospectus (DRHP) with the capital markets regulator SEBI for its upcoming primary market offering.

The initial public offer (IPO) would combine a fresh issue of shares along with offer for sale by the existing shareholders. The company counts Intel Capital, Cascade Capital Management, Mauritius, and Frontline Strategy as key investors who will be selling their respective holdings via the IPO route.

The company plans to raise close to Rs 700 crore via the IPO process, combining both fresh issue and offer for sale.

Tejas Networks plans to use the IPO proceeds towards capital expenditure needs such as payment of salaries and wages. It will also use the money for general corporate purposes.

The company has appointed Axis Capital, Citigroup Global Markets, Edelweiss Financial Services, and Nomura Financial Advisory as the bankers to the issue and for managing the IPO.