The initial public offering (IPO) of Netweb Technologies India, a leading provider of high-end computing solutions, is set to open for public subscription on July 17. The IPO will remain open for a 3-day subscription period and is scheduled to close on July 19.
Netweb Technologies IPO consists of a fresh issue of shares worth ₹206 crore and an offer-for-sale of up to 85 lakh shares by its existing promoters and shareholders. The price band for the public issue has been set at ₹475-500 per share, with the company aiming to raise ₹631 crore at the upper band price.
Netweb Technologies specializes in High-end Computing Solutions (HCS) and caters to various sectors, including IT, IT-enabled services, entertainment, media, BFSI, national data centers, and government entities. The company operates a manufacturing facility in Faridabad, Haryana, and has 16 offices across India.
Post the public offer, Netweb Technologies shares will be listed on the stock exchanges BSE and NSE on July 27. The allotment of shares is expected to take place on July 24.
The lot size for the Netweb Technologies IPO is 30 shares, and retail investors can apply for up to 13 lots.
Netweb Technologies IPO Subscription Status
As of 5:00 p.m. on July 17, the IPO has been subscribed 2.33 times. The subscription status is as follows:
- Institutional investors: 0.03 times or 3%
- Non-institutional investors: 3.61 times
- Retail investors: 3.00 times
- Employee reserved: 6.60 times
Netweb Technologies IPO Details
The key details of the Netweb Technologies IPO are as follows:
- IPO Date: July 17, 2023 to July 19, 2023
- Listing Date: To be announced
- Face Value: ₹2 per share
- Price Band: ₹475 to ₹500 per share
- Lot Size: 30 shares
- Total Issue Size: 12,620,000 shares (aggregating up to ₹631.00 Cr)
- Fresh Issue: 4,120,000 shares (aggregating up to ₹206.00 Cr)
- Offer for Sale: 8,500,000 shares of ₹2 (aggregating up to ₹425.00 Cr)
- Employee Discount: ₹25 per share
- Issue Type: Book Built Issue IPO
- Listing At: BSE, NSE
Netweb Technologies IPO Objectives
The net proceeds from the IPO will be utilized for the following purposes:
- Funding capital expenditure requirements for civil construction of the building for the surface mount technology (SMT) line and interior development, and purchase of equipment/machinery for the new SMT production line (SMT Line)
- Funding of long-term working capital requirements
- Repayment or pre-payment, in full or in part, of certain outstanding borrowings
- General corporate purposes
Netweb Technologies IPO Review
The financial performance of Netweb Technologies has been impressive, with a significant increase in revenue and net profit for the fiscal year 2022. However, the IPO appears to be aggressively priced, discounting all near-term positives. Well-informed investors may consider investing for medium to long-term rewards.
About Netweb Technologies India
Netweb Technologies India Limited, incorporated in 1999, is a leading provider of high-end computing solutions in India. The company specializes in Supercomputing systems, private cloud and HCI, data center servers, AI systems and enterprise workstations, and HPS solutions. Netweb Technologies has both design and manufacturing capabilities in-house and has deployed over 300 supercomputing systems and over 4000 accelerator/GPU-based AI systems and enterprise workstations as of February 2023.
The company collaborates with industry giants such as Intel, Samsung, AMD, and NVIDIA to innovate on product offerings. It caters to marquee customers across various industries and aims to expand its geographical footprint in Europe, the Middle East, and Africa (EMEA).
The Netweb Technologies IPO presents an opportunity for investors to participate in the growth of a leading provider of high-end computing solutions in India. With a strong order book and impressive financial performance, the company is well-positioned for future growth. Investors should carefully consider the IPO details and consult with their financial advisors before making investment decisions.