Tejas Networks Ltd. gained more than 6 percent on Wednesday after the company announced signing a deal worth nearly Rs 7,500 crore with Tata Consultancy Services for supplying 4G equipment to BSNL networks.

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The company has signed a contract with TCS, a related party, for the purchase order towards the supply of radio access network (RAN) equipment for BSNL’s 4G and 5G network across India, Tejas Networks stated in a filing to the stock exchanges.

The supply order is worth Rs 7,492 crore (around $900 million), the company informed the bourses.

The Tata group company will supply 4G/5G RAN equipment for around 1,00,000 sites of BSNL across India.

The equipment will be supplied during the calendar years 2023 and 2024 while support and maintenance services will be for a period of nine years post-warranty period, Tejas Networks stated.

As the transaction is a related party deal, the company has received approval from its shareholders for the said transaction with TCS.

Tejas Networks, which would be the sole supplier of 4G/5G RAN equipment for one of the largest mobile networks in the world, mentioned that it won the order after completing extensive trials as part of a consortium led by TCS.

A TCS-led consortium, including Tejas Networks, in May 2023, received an advance purchase order worth more than Rs 15,000 crore from BSNL for deploying a 4G network pan-India.

State-run BSNL is using an indigenously-developed 4G core technology from the Centre for Development of Telematics (C-DOT) for providing faster mobile internet services.

Tejas Networks designs and manufactures wireline and wireless networking products for telecommunications service providers, internet service providers, utilities, defence and government entities in over 75 countries.

It is a part of the Tata Group, with Panatone Finvest Ltd. (a subsidiary of Tata Sons) being the majority shareholder.

Shares of Tejas Networks are trading 4.4 percent higher at Rs 848.90. The stock has risen nearly 40 percent on a year-to-date basis.

First Published:Aug 16, 2023 11:06 AM IST