After witnessing Netweb Technologies phenomenal debut on the Indian stock exchanges, investors who were lucky enough to be allotted the shares were left exhilarated, eagerly crunching the numbers to calculate their remarkable profit margins. The stock's spectacular performance left them in awe, as they saw their investments soar to new heights within a short span of time.
On the first day of trade, Netweb Technologies' shares opened at ₹947 apiece, representing a staggering 89.4% premium compared to their IPO price of ₹500 apiece. The IPO had received a phenomenal response from investors, as it was subscribed 90 times during the period from July 17 to July 19.
The portion reserved for qualified institutional bidders was subscribed a whopping 220.69 times, while that for non-institutional investors was subscribed 83.21 times. Meanwhile, the employee portion was subscribed 55.92 times, and the retail portion was subscribed 19.48 times.
For instance, if a retail investor were allotted shares of the company, the investment would now be valued at around ₹28,410 (947*30). Taking the initial investment into account ₹15,000 (500* 30), the net profit would amount to ₹13,140 or an impressive 89.4%.
In contrast, the same net return for an S-HNI (Super High Net Worth Individual) would be approximately ₹1,87,740, as the minimum lots for S-HNIs were set at 14, while the same for retail investors was one lot.
The company is one of India’s leading Indian origin owned and controlled OEMs in the space of HCS, providing Supercomputing systems, private cloud and HCI, data centre servers, AI systems and enterprise workstations, and HPS solutions.
It develops homegrown compute and storage technologies, deploy supercomputing infrastructure to meet the rising computational demands of businesses, academia, and research organisations, particularly under India's National Supercomputing Mission. Further, thus far, three of their supercomputers have been listed 11 times in the world's top 500 supercomputers.
Over the years, the company has designed, developed, and deployed some of India’s most powerful Supercomputing systems, including AIRAWAT, Agastya, PARAM Ambar, Hartree, Kohinoor 3, PARAM YUVA-II, and more, as per company's DRHP report.
Most brokerage firms had assigned a ‘subscribe’ rating to the issue on the back of strong fundamentals, and a robust product portfolio. The company posted a net profit of ₹46.94 crore for the financial year ending March 31, 2023, an increase of 109% over FY22's net profit of ₹22.45 crore.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
