Tejas Networks share price jumps 13% after ₹1,537 crore TCS order for BSNL 4G network
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Tejas Networks shares rallied after TCS issued a ₹1,537 crore LoI for BSNL’s 4G network covering 18,685 sites.
Shares of Tejas Networks surged as much as 13% in early trade on the BSE on Friday, August 28, after the Tata Group telecom equipment maker disclosed a ₹1,537 crore letter of intent (LoI) from Tata Consultancy Services (TCS).
The stock opened at ₹540.60, compared with its previous close of ₹510.85, and climbed to an intraday high of ₹576.80, gaining 12.91% in the process. The rally put the stock on track for its third consecutive session of gains.
Tejas Networks shares pared some of the gains later in the morning and were trading 9.20% higher at ₹557.85 around 10:35 am.
TCS letter of intent for BSNL 4G rollout
In an exchange filing after market hours on August 27, Tejas Networks said it had received the LoI from TCS on the same day for the supply of radio access network (RAN) equipment, accessories and installation materials for BSNL's 4G mobile network.
The proposed order covers 18,685 sites and is valued at ₹1,537 crore.
Tejas Networks also clarified that the detailed purchase order from TCS is yet to be issued and will follow in due course. The latest disclosure, therefore, relates to the LoI and not a final purchase order.
Tejas Networks is part of the Tata Group and supplies networking and telecom products to telecommunications operators, service providers, utilities and government organisations across more than 75 countries.
The company's latest disclosure comes against the backdrop of BSNL's ongoing 4G network expansion, with domestic telecom equipment companies participating in the rollout.
Investors will now track the issuance of the formal purchase order by TCS and subsequent updates from Tejas Networks on the execution of the project.
At around 10:35 am, Tejas Networks shares were trading at ₹557.85, up 9.20% on the BSE.
**This is a developing story and will be updated as more details emerge **
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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