Tata Sons Pvt.Ltd., strikes a deal with Tejas Network Ltd to acquire a controlling stake for as much as Rs.2,888.6 crore ($ 388.5 million). This entails that the former’s Panatone Finvest, a subsidiary arm, has already witnessed an execution of definitive agreements from the latter.

The holding arm of Tata is now expected to invest Rs 1,850 crore to subscribe to preferential shares and warrants.

It has launched an open offer to buy up to 26 percent more of the company from public shareholders for up to Rs 1,038.6 crore. Panatone and other Tata group companies are said to make an open offer to buy up to 4.03 crore Tejas Networks equity shares, representing 26 percent of the developing voting capital, in line with SEBI Takeover Regulations.

Likewise, given the completed acceptance of the offer, Tata will then most likely be able to hold 63.1 percent of Tejas' increased share capital.

On that account, Tejas' shares rose five percent to Rs 246 per share on the BSE, above its usual limit of five percent.

Tejas Networks Chairman V Balakrishnan commented on the move, saying, "this partnership offers us with the required financial resources, worldwide ties, and strong ecosystem to innovate and build our business”.

There will also be a preferential issue of 3.68 crore warrants, each of which entitles the holder to subscribe for one equity share at a price of Rs 258 per equity share, for a total of Rs 950 crore.

Panatone may do so in one or more tranches during the period beginning on the date of allotment of the warrants and ending 11 months after the date of allotment of the warrants.

There will also be a preferential allotment of 1.55 crore warrants, each with the opportunity to subscribe for one equity share at a price of Rs 258 per equity share, for a total of Rs.400 crore.

Panatone may exercise this right in one or more tranches between the expiration of 12 months from the date of the warrants' allotment and the expiration of 18 months from the date of the warrants' allotment.

Tejas Networks, according to Tata Sons Executive Director Saurabh Agrawal, is a leading telecom and network company with a strong DNA of research and development. Therefore, Mr.Agrawal remarked that, “we are excited to collaborate with Tejas Networks' highly experienced management team to develop a full stack of globally competitive wireline and wireless products”.

Tata Group has acquired at least four technology companies so far this year as it seeks to expand its digital offerings. The company owns a majority position in online pharmacy 1mg, control of online supermarket BigBasket, and a $75 million investment in fitness startup CureFit Healthcare Pvt. Ltd.