scorecardresearchIPO Alert: Netweb Technologies files papers with SEBI for public issue;

IPO Alert: Netweb Technologies files papers with SEBI for public issue; check details

Updated: 29 Mar 2023, 02:48 PM IST
TL;DR.

The issue with a face value of 2 per equity share, consists of an offer-for-sale (OFS) of up to 8.5 million equity shares and a new issuance of equity shares worth 257 crore.

Netweb Technologies Ltd IPO: The company may think about a pre-IPO placement totaling up to  <span class='webrupee'>₹</span>51 crore after consulting with the issue's lead bankers.

Netweb Technologies Ltd IPO: The company may think about a pre-IPO placement totaling up to 51 crore after consulting with the issue's lead bankers.

Netweb Technologies India Ltd has filed draft red herring prospectus (DRHP) with Securities and Exchange Board of India (SEBI) to raise funds via an Initial Public Offering (IPO).

The issue with a face value of 2 per equity share, consists of an offer-for-sale (OFS) of up to 8.5 million equity shares and a new issuance of equity shares worth 257 crore.

Under offer for sale, Sanjay Lodha will offload up to 2.86 million equity shares, Navin Lodha will sell up to 1.43 million equity shares. Up to 1.43 million equity shares will be sold by Vivek Lodha and up to 1.43 million equity shares by Niraj Lodha. Further, Ashoka Bajaj Automobiles Private Ltd will offload up to 1.35 million equity shares.

The offer is being made through the book building process, in which not less than 15% of the offer must be made available to non-institutional investors and not less than 35% of the offer must be made available to retail individual investors. Not more than 50% of the offer may be allocated to qualified institutional buyers.

The company may think about a pre-IPO placement totaling up to 51 crore after consulting with the issue's lead bankers. If such a placement is successful, the size of the fresh issue will be decreased.

As per the DRHP, the proceeds from the issue will be utilised to the extent of 32.77 crore for funding its capital expenditure, 128.02 crore for funding its long-term working capital, 22.50 crore for repayment or pre-payment, in full or in part, of certain of its outstanding borrowings and general corporate purposes.

Its order book worth increased from 48.56 crore to 98.12 crore between March 31, 2022, and February 28, 2023.

According to the DRHP, for the fiscal year 2022, the company’s revenue from operations increased 73.0% to 247.03 crore against 142.79 crore a year ago primarily due to an increase in the sale of Supercomputing systems, AI systems and enterprise workstations and data centre servers, sale of services due to deployment of 5G cloud solutions for an international telecommunication service provider. Net profit for the period increased 172.82% to 22.45 crore as against 8.23 crore last year.

Netweb Technologies, incorporated in 1999, is one of India’s leading Indian origin, owned and controlled original equipment manufacturer (OEM) in the space of host computer service (HCS) providing Supercomputing systems, private cloud and hyperconverged (HCI), data centre servers, artificial intelligence (AI) systems and enterprise workstations, and HPS solutions, according to a F&S Report mentioned in the DRHP.

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First Published: 29 Mar 2023, 02:48 PM IST