Tata Sons has bought a major stake in Tejas Network. Through this deal, Tata Group’s plan is to bring 5G revolution in the country. Tata Group is preparing to compete with companies like Nokia, Huawei, Jio.
Mukesh Ambani also has a big plan regarding 5G.
Tata Group is preparing to revolutionize the world of 5G. Reliance Jio has already announced its mega plan regarding 5G. Now the Tata Group has also joined this race. Tata Sons has announced to buy a controlling stake in telecom equipment maker Tejas Network. Due to this deal, Tata Group’s entry will be in 5G and it will be able to compete with companies like Nokia, Ericsson and Huawei. Mukesh Ambani also has a big plan regarding 5G.
In the 44th Annual General Meeting of Reliance, Mukesh Ambani had said that he would make India 2G free and 5G enabled with the help of Jio. He assured that only Reliance Jio will start 5G in the country. Reliance Jio has made tremendous strides in developing state-of-the-art standalone 5G technology, which is a big leap forward for wireless broadband. Mukesh Ambani said that during the 5G trials, Jio has successfully achieved speeds of more than 1 Gbps. Mukesh Ambani described Jio’s ‘Made in India’ solution as world class. Jio is testing 5G technology in many cities including Delhi, Mumbai. He also said that when Jio’s 5G becomes successful in India, it will also be exported to other countries of the world. In this way India will become a global center of 5G development and exports.
Will buy 43.35 percent stake
According to a report published in the Economic Times regarding Tata Sons and Tejas Network deal, Panatone Finvest Ltd, a unit of Tata Sons, will buy 43.35 percent stake in Tejas Network with the help of preferential issue. Regarding this deal, Tejas Network said in its statement that it has entered into a binding agreement with Pantone Finvest, a subsidiary of Tata Sons (Tata Group’s holding firm). Under this agreement, the company will issue 1.94 crore equity shares to Pantone on a preferential basis at the rate of Rs 258 per share, totaling Rs 500 crore.
Purchase through preferential allotment
This will be followed by another preferential allotment of 3.68 crore warrants, each of which can be converted into one share at the rate of Rs 258 per equity share, for a total amount of Rs 950 crore, the company said. This option can be exercised in one or several stages within 11 months from the date of issue of the warrant by Pantone, the statement said. In addition, preferential allotment of 1.55 crore warrants will also be made, each of which can be converted into shares at the rate of Rs 258 per equity share, totaling Rs 400 crore. This option can be exercised within 18 months from the date of issue of the warrant.
Tata Sons’ stake in Tejas Network to reach 72%
Pantone will acquire 1.3 million equity shares of Tejas Network from certain management personnel at a rate not exceeding Rs 258 per equity share for a total amount of Rs 34 crore, the statement said. Thereafter, Pantone and some other Tata group companies will make an open offer for acquisition of 4.03 crore equity shares of Tejas Network in accordance with the takeover rules of SEBI. In a few years, when this deal is completed, Tata Sons’ stake in Tejas Network will increase to 72 percent.
TCS and Airtel join hands for indigenous 5G technology
The preparation of Tata Group is to revolutionize the world of 5G. Talking about software capability, this work will be done with the help of TCS, while hardware support will be available with the help of Tejas network. It was last month when Bharti Airtel and Tata Group company TCS jointly announced a strategic partnership for 5G networking in India. Both the companies are working together on indigenous 5G technology. Airtel is preparing to start work on a pilot project for 5G by January 2022.
Application for PLI scheme
Tata Group is in full preparation for 5G in India. It does not want to miss the opportunity for itself in the enterprise segment. According to the Economic Times, applications have also been made by Tejas and Tata Sons regarding incentives under the PLI scheme. The purpose of establishing Tejas was to supply equipment to telecom companies.
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