Tejas Networks stock hits all-time high on optical fibre network in Italy

Shares of Tejas Networks, a Tata Group-owned company, hit a record high on Wednesday after it partnered with FibreConnect to deploy an end-to-end optical network in Italy.

Tejas Networks is the sole supplier of optical networking and broadband access products for FibreConnect's country-wide FTTP (fiber-to-the-premise) rollout.

Reacting to the development, shares of Tejas Networks rose as much as 7% in intraday trade to hit a record high of ₹940 on the National Stock Exchange (NSE), taking the company's market cap to ₹15,000 crore.

The Tata Group stock has gained nearly 50% on a year-to-date basis and 25% over the past year.

Based on a unique business model built around partnerships with regional and retail ISPs (Internet Service Providers), FibreConnect targets industrials areas in Italy which currently lack broadband infrastructure to support the Italian government’s ‘Transition 4.0’ plan to promote the digital transformation of its manufacturing sector, the company says in a stock exchange filing.

As a part of this contract, Tejas Networks has deployed its full-range of products. The complete network is being managed using TejNMS, the company’s multi-technology network management system.

Tejas Networks designs, develops, and sells networking products to telecommunications service providers, internet service providers, utilities, defence, and government firms.

“FibreConnect is thrilled to partner with Tejas Networks on this transformative network rollout that seeks to bridge the digital divide for small & medium businesses in Italy and extend the benefits of high-speed connectivity to unserved businesses and industries across the country through its ISP partners,” says Renzo Ravaglia, executive chairman and CEO of FibreConnect.

“In spite of challenging macro-economic headwinds, Tejas Networks fully met our expectations of timely deliveries, high quality, and prompt customer support to successfully get this network up and running as per committed deadlines,” Ravaglia adds.

Commenting on the deal, Anand Athreya, chief executive officer and managing director of Tejas Networks, says, “We are delighted that FibreConnect chose to build the complete network in Italy using our carrier-class optical and broadband access products. Besides signaling our emergence as a leading end-to-end supplier of world-class telecom equipment, this win also demonstrates a growing confidence among global telcos in our ability to design and execute complex, large scale networks, all the way from access to core.”

FibreConnect's unique business model, combined with Tejas’ expertise in building programmable, next-generation networks, could prove to be a potential game changer for the Italian telecommunications industry and can be replicated in other parts of Europe as well, says Indranil Sen, chief revenue officer (UK and EU) of Tejas Networks.

In July 2021, Tata Sons’ subsidiary Panatone Finvest signed an agreement to acquire a 43.3% stake in Tejas Networks for nearly ₹1,850 crore. Tata Sons and its subsidiaries Panatone Finvest and Akashastha Technologies own a 52.45% stake in the company.