scorecardresearchNetweb Technologies continues to see robust response, subscribed 84 times

Netweb Technologies continues to see robust response, subscribed 84 times on final day; check GMP

Updated: 19 Jul 2023, 04:14 PM IST
TL;DR.

Netweb Technologies issue was subscribed 84.02 times at 3:30 pm on the final day of bidding, July 19, 2023. It received bids for 74.27 crore shares against 88.58 lakh shares on offer.

Netweb Technologies continued to receive a robust response from investors.

Netweb Technologies continued to receive a robust response from investors.

The initial public offering (IPO) of Netweb Technologies continued to receive a robust response from investors. The issue was subscribed 84.02 times at 3:30 pm on the final day of bidding, July 19, 2023. It received bids for 74.27 crore shares against 88.58 lakh shares on offer.

The portion reserved for qualified institutional buyers (QIB) was subscribed the most, 204.23 times, followed by the non-institutional investors' (NII) quota, 77.95 times. Meanwhile, the part reserved for employees saw 48.11 times subscriptions and the retail portion category received 18.08 times the reserved shares.

The QIB part received bids for 51.47 crore shares versus 25.20 lakh shares on offer while the NII quota received bids for 14.73 crore shares versus 18.90 lakh shares offered. The employee portion saw bids for 9.14 lakh shares against 19,000 shares on offer and the retail investor category received bids for 7.97 crore shares against 44.1 lakh on offer.

GMP: The company's shares witnessed a strong premium of 360 in the grey market on Wednesday (July 19), indicating a strong demand for the IPO. This was the same in the previous session (July 18), however, it has risen from 325 on July 17 and 300 on July 13.

However, one must note that grey market premium is only an indicator of how the company's shares are performing in the unlisted market and can change quickly.

The 631-crore IPO of Netweb Technologies opened for subscription on July 17, 2023. The price band for the IPO of this high-end computing solution (HCS) provider, which closes for subscription on July 19, has been set at 475-500. This is the third offering in the current month after Senco Gold and Utkarsh Small Finance Bank.

The issue comprises a fresh issuance of shares worth 206 crore by the company and an offer for sale of 85 lakh shares worth 425 crore at an upper price band by the promoters. Sanjay Lodha, Navin Lodha, Vivek Lodha, Niraj Lodha and Ashoka Bajaj Automobiles LLP are the promoter-selling shareholders.

Fresh issue proceeds will be utilised for capital expenditure towards surface mount technology (SMT) line development, long-term working capital requirements, repaying debts, and general corporate purposes. The offer for sale money will go to promoters selling shareholders in the IPO and the company will not receive any money from the OFS portion.

The allotment of IPO shares will be finalised by July 24 and the trading in equity shares of Netweb Technologies will start on July 27, as per the IPO schedule.

Most analysts advise subscribing to the IPO considering its attractive valuations, strong growth opportunities, robust fundamentals and rich product portfolio.

Netweb Technologies India Ltd. specialises in high-end Computing Solutions (HCS) and serves 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. NTIL’s 3 supercomputers have been listed among the world's top 500 supercomputers 11 times.

 

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First Published: 19 Jul 2023, 04:14 PM IST