NEW DELHI: There is no stopping the rally in Tejas Networks. The stock hit the upper circuit for the fourth consecutive session on Monday, thanks to its plan to make the most of the upcoming 5G businesses in the country.

The Tata Group-owned stock climbed 5 per cent during the trade on Monday, closing in on the 52-week high levels it hit in October last year. The counter traded at Rs 468.40 on BSE.

The trigger for such a rally in the stock is its announcement of the acquisition of Saankhya Labs, a Bengaluru based company, which is involved in 5G technologies and chip design. Tejas plans to eventually merge the firm with itself.

Tejas, which is also part of Vijay Kedia‘s portfolio, said the acquisition will enhance the company’s Wireless offerings by adding 5G ORAN, 5G Cellular Broadcast and Satellite communication products to its product portfolio. It will also add to its customer base in India and international markets.

Saankhya has 73 International patents to its name of which 41 are already approved. With customers in the US, Europe, Asia and India, and strong domain expertise in all aspects of wireless communications and chip design, Tejas believes it will be value accretive for it.

“Tejas has a vision to become a top global telecom product company over the next few years. Immediate focus is to accelerate R&D investments to create a larger portfolio of products. Acquisition of Saankhya will bring in a strong domain expertise and IPR in wireless communication (5G, Broadcast, Satellite) as well as semiconductor design,” said the management of Tejas in a recent investor presentation.

“Saankhya will be complementary in terms of product/technology areas and customer access. Tejas, as a larger platform, will derive synergies in R&D, Sales and SCM/Operations,” it said, adding that we continue to have a strong balance sheet to invest and accelerate our growth.

Interestingly, there is no analyst coverage on the counter. In the last one year, it has rallied 182 per cent, meaning nearly three-fold growth.