Tejas Networks Limited – IPO
Bengaluru-based optical and data networking products company “Tejas Networks Limited” is planning to raise about Rs. 450 crore through an initial public offering (IPO).
Incorporated in the year 2000, Tejas Networks Limited design, develop and sell high-performance and cost-competitive products to defense companies, government entities, internet service providers, telecommunications service providers, and utility companies in India and 60 more 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 Limited builds hardware and software products related to optical and data networking. The hardware is built using a 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 Ltd has 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.
- Tejas Networks is ranked amongst top-10 suppliers in the global optical aggregation segment.
Sanjay Nayak, Dr. Kumar N Sivarajan and Arnob Roy joined the company when started.
IPO Date & Listing
The company shows steady revenue growth in recent years. Topline has been increasing regularly for the last five years and jumped from INR 192 crore in FY2012 to INR 673 crore for the year ended March 2016.
Though the company has shown steady growth in revenue, the company failed to registered steady profits in these years. In FY2012, it booked a loss of INR 79.32 crore but earnings improved to INR 27.49 crore in FY2016.
Despite the improvement in earnings, its margins are at 7.2%.
Considering company’s valuation, financial parameters, and the segment in which it is working, FinBlab is NEUTRAL on this issue.
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