Tejas Networks files for IPO

Bengaluru-based telecom equipment company Tejas Networks Limited has filed the draft red herring prospectus with SEBI for an IPO. The IPO comprises a fresh issue of shares worth Rs 4.5 billion ($67 million) and an offer for sale of 12.71 million shares by shareholders. The company plans to use Rs 452.8 million from the IPO proceeds towards capital expenditure needs such as payment of salaries and wages. It intends to use Rs 3.03 billion towards working capital requirements and an undisclosed amount for general corporate purposes. Meanwhile, the company plans to raise as much as Rs 1.5 billion by selling 6 million shares ahead of the IPO. If the pre-IPO private placement goes through, the company will reduce the IPO size.