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Netweb Technologies, a computing solutions provider, has set a price range of ₹475-500 per share for its initial public offering to raise ₹630 crore.
The IPO consists of a fresh issue of ₹206 crore and an offer-for-sale of up to 8.5 million shares by its existing promoters and shareholders. On the upper band price, the company expected to raise ₹632 crore via IPO.
The OFS comprises up to 2.86 million shares by Sanjay Lodha, up to 1.43 million each by Navin Lodha, Vivek Lodha and Niraj Lodha, and up to 1.35 million by Ashoka Bajaj Automobiles LLP.
Out of the proceeds from the fresh issue, ₹32.29 crore will be used for funding capital expenditure, ₹128 crore for working capital and ₹22 crore will be used to repay its debt.
On July 3, the company said it had raised ₹51 crore from institutional investors in a pre-IPO placement, reducing the IPO’s fresh issue size. The company has allotted 10.2 lakh shares of LG Family Trust (20,000 equity shares), Anupama Kishor Patil (100,000 shares), 360 ONE Special Opportunities Fund - Series 8 (500,000 shares), and 360 ONE Monopolistic Market Intermediaries Fund (400,000 shares) in the pre-IPO placement.
The company announced that the IPO will commence on July 17, while the anchor bidding is scheduled for July 14. The IPO shares will be allotted to investors on July 24 and the stock will list on exchanges on July 27.
Netweb offers top-tier computing solutions and services such as supercomputing systems, private cloud and HCI solutions, data centre servers, AI systems, enterprise workstations, and HPS solutions.
In FY23, the company reported a revenue of ₹445 crore against ₹247 crore a year ago. Net profit for the year stood at ₹47 crore against ₹22 crore last year, and the EBITDA margin increased to 15.89 per cent from 14.37 per cent.
Net debt stood at ₹29 crore as of last fiscal. As of May, the company’s total order book was at ₹90 crore, while as of FY23, it was around ₹71 crore.
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