Tejas will supply, install and support it’s optical transmission products for extending Airtel’s optical networks towards the edge, supporting 5G, business-to-business (B2B) services and broadband applications.
Key points to note –
- Tatas (through a subsidiary of Tata Sons) recently (July 2021) acquired a controlling 43.55% stake in Tejas for Rs 1,884 crore at Rs 258/ share. Additionally Tatas are looking to acquire 26% through open offer in compliance with the takeover regulations.
- Though Tejas and Airtel have long relationship, Tata’s entry would have surely given additional comfort to Airtel. Telecom sector needs scale and confidence to award critical network contracts and Tatas bring and complement that to Tejas’s technical capabilities.
- It’s important to mention here that Tejas has a very volatile past. Numbers have been all over the place. Stock price from the high of Rs 435 in January 2018 declined to Rs 31 in May 2020 and then increased to Rs 437 currently.
Tata’s entry hopefully will take care of the underlying weaknesses and better leverage it’s strength especially in current times when Indian telecom sector seems to be stabilising and moving toward the next phase of 5G.