Shares of Netweb Technologies made and exceptional debut on Thursday. It listed at ₹947, a premium of 89.40 percent from its issue price of ₹500 on NSE. Meanwhile, on BSE, it listed at ₹942.50, a premium of 88.5 percent.
The ₹631-crore initial public offering of Netweb Technologies opened for subscription today, July 17, 2023. The price band for the IPO of this high-end computing solution (HCS) provider, which closes for subscription on July 19, was set at ₹475-500. This was the third offering in the current month after Senco Gold and Utkarsh Small Finance Bank.
The public issue has received an overwhelming response from investors, subscribing 90.55 times during July 17-19. It received bids for 72 lakh shares against 80.04 crore shares on offer.
The quota reserved for qualified institutional bidders (QIBs) was subscribed a massive 220.69 times, the highest by this category of investors in more than a decade. It was followed by the non-institutional bidders' (NIIs) part, which was booked 83.21 times while portion allocation to retail investors was subscribed 19.48 times. Finally, the employee's quota saw 55.92 times bids.
The issue comprised of 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.
The fresh issue proceeds (excluding issue expenses) will be utilised for capital expenditure towards surface mount technology (SMT) line development, long-term working capital requirements, and for repaying debts, and remaining for 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.
Most analysts advised subscribing to the IPO considering its attractive valuations, strong growth opportunities, robust fundamentals and rich product portfolio.
Incorporated in 1999, Netweb Technologies provides high-end computing solutions (HCS), offering high-performance computing (supercomputing/HPC) systems; private cloud and hyper-converged infrastructure (HCI); AI systems and enterprise workstations; high-performance storage solutions; data center servers, software and services.
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.