Bangalore: Private equity firm Frontline Strategy has invested in Tejas Networks, a Bangalore based optical networking equipment manufacturer in India. Frontline has picked up the stake through a secondary transaction. But, the firm did not mention the deal size or from which shareholder of Tejas the stake was bought.

The investment comes out of India Industrial Growth Fund (IIGF), a $200 million fund launched in 2007 focusing on growth sectors and small and medium enterprises (SMEs). The fund's other investments are Krishna Saa Fabs (a galvanizing/structural engineering firm) and Shriram SEPL Composites (a manufacturer of glass reinforced polyester composite pipes). IIGF is sponsored by Madrid-based non-resident Indian Harish Fabiani.

The company has raised around $70-75 million in funding, and investors reportedly hold nearly a 50 percent stake in Tejas. It has also raised private equity funding from investors like Battery Ventures, Cascade Capital Management, Mayfield Fund, Intel Capital, Goldman Sachs and Sandstone Private Investments.

Founded in 2000 by four technology professionals - Sanjay Nayak, Kumar N Sivarajan, Arnob Roy and Gururaj Deshpande, Tejas was planning for a public offering before the market crash. The company has spread its reach to over 100 countries through strategic OEM partnerships with equipment vendors. Tejas recorded revenues of Rs. 234 crore in FY07, up from Rs. 128 crore in FY06 and Rs. 47 crore in FY05.