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).

Company Background

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.

Working Area

  • 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.

Company Promoters

Sanjay Nayak, Dr. Kumar N Sivarajan and Arnob Roy joined the company when started.

IPO Details 

IPO Date & Listing

Financial Performance

Revenue –

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.

Profit –

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.

Margin –

Despite the improvement in earnings, its margins are at 7.2%.

CONCLUSION –
Considering company’s valuation, financial parameters, and the segment in which it is working, FinBlab is NEUTRAL on this issue.

 


Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “Fin Blab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.


 

 

 

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About me

Vishal Dalwadi

Vishal Dalwadi

Vishal is an MBA (Finance) post-graduate. He is the founder and owner of "FinBlab". His blog aims at providing information and research on Stock market and sectors including Mutual funds, IPOs, Insurance and more.

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