Tata Sons subsidiary, Panatone Finvest Ltd, has signed an agreement to acquire a 43.3 per cent stake in Tejas Networks worth Rs 1,850 crore. Tejas Networks designs and sells networking products to telecommunications service providers, internet service providers, utilities, defence and government entities.

The company will use the profits gained from the preferential allotment to invest organically and inorganically in the research & development, sales and marketing, people, infrastructure, and manufacturing and operational capabilities.

Tata group’s Panatone will also make a public announcement to take up to 4.03 crore equity shares of Tejas Networks. The agreement between Panatone and Tejas Networks has a preferential allotment of 1.94 crore equity shares at a rate of Rs 258 per share. Also, a preferential issuance of 1.55 crore warrants, which has a right to subscribe to one equity share at a value of Rs 258 per share. The agreement also includes over 13 lakh equity shares of the Tejas Networks from certain personnel in management.