Tejas Networks, the Rs 240 crore Bangalore-based optical networking firm which makes proprietary boxes for transmitting data for telecom carriers, has been valued at Rs 2,400 crore ($625 million) by Goldman Sachs when it recently invested around Rs 95 crore.The investment by Goldman Sachs in the firm takes the total private equity investments in the company to Rs 280 crore ($73 million).
Tejas is aiming to go public next year and its valuation is expected to be close to Rs 3,200 crore ($800 million), when it will have a topline of around Rs 400 crore.
According to industry information, around 10-15 per cent is expected to be offloaded, with Tejas raising around Rs 300 crore in the process. Tejas Networks offered not to comment on the valuation by Goldman Sachs.
Other private equity investors, include Sandstone, Intel Capital. Mayfield Ventures, Battery Ventures, SUN Group of the Khemkas, besides ASG Omni. IL&FS Venture was among the early investors who have exited the firm. Tejas has Silicon Valley billionaire entrepreneur Gururaj Deshpande as its mentor and early-stage investor, besides his company Sycamore, also has an exposure.
Tejas Networks is among the few homebred firms focussing heavily on the Indian markets and counts almost all telecom service providers among its customers.
Read more in The Business Standard article.
Showing posts with label Tejas Networks. Show all posts
Showing posts with label Tejas Networks. Show all posts
Wednesday, December 12, 2007
Thursday, August 16, 2007
Nortel takes stake in Tejas Networks
Nortel Networks is picking a minority stake in Bangalore-based optical network firm Tejas Networks. The deal is part of a product sourcing arrangement wherein the $11.4-billion Canadian telecom equipment company was to get the equity stake after certain purchase milestones with Tejas as the original equipment manufacturer (OEM) supplier.
According to sources close to the deal, Tejas would issue warrants to Nortel to acquire 12,954 equity shares of Rs 10 each at a premium of Rs 9,046 per share. This would translate into an investment of about Rs 12 crore.
Significantly, the price at which the warrants would be issued has been modified recently. As per the original terms of the agreement between Nortel and Tejas struck three years back, the exercise price of each share was fixed at Rs 13,115. However, last month the two parties decided to change the exercise price to Rs 9,056 per share. In this transaction, Nortel is not being inducted as a promoter and would not have a lock-in period for its shares.
Incidentally, Tejas is expected to go public next year. Though it is not clear if the public offering would be launched in India or in the US.
As per the deal between the two parties, a certain number of warrants was to vest with Nortel after each $5 million worth of OEM purchase from Tejas. In total 12,954 warrants was to vest with Nortel after its cumulative OEM purchase from Tejas hit the $50 million mark.
Tejas is a privately-owned company co-founded by Sanjay Nayak (CEO), Kumar Sivarajan (CTO) and Arnob Roy (VP Engineering). It is backed by investors, including serial entrepreneur and ace venture capitalist Gururaj Deshpande, and VC firms Battery Ventures and Mayfield. The other investors include US-headquartered Sycamore Networks, investment funds Sandstone Capital, Intel Capital and the Khemkas-owned Sun Group.
According to sources close to the deal, Tejas would issue warrants to Nortel to acquire 12,954 equity shares of Rs 10 each at a premium of Rs 9,046 per share. This would translate into an investment of about Rs 12 crore.
Significantly, the price at which the warrants would be issued has been modified recently. As per the original terms of the agreement between Nortel and Tejas struck three years back, the exercise price of each share was fixed at Rs 13,115. However, last month the two parties decided to change the exercise price to Rs 9,056 per share. In this transaction, Nortel is not being inducted as a promoter and would not have a lock-in period for its shares.
Incidentally, Tejas is expected to go public next year. Though it is not clear if the public offering would be launched in India or in the US.
As per the deal between the two parties, a certain number of warrants was to vest with Nortel after each $5 million worth of OEM purchase from Tejas. In total 12,954 warrants was to vest with Nortel after its cumulative OEM purchase from Tejas hit the $50 million mark.
Tejas is a privately-owned company co-founded by Sanjay Nayak (CEO), Kumar Sivarajan (CTO) and Arnob Roy (VP Engineering). It is backed by investors, including serial entrepreneur and ace venture capitalist Gururaj Deshpande, and VC firms Battery Ventures and Mayfield. The other investors include US-headquartered Sycamore Networks, investment funds Sandstone Capital, Intel Capital and the Khemkas-owned Sun Group.
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