Comments
The ₹631-crore IPO of Netweb Technologies, which opened for public subscription on Monday, will close today. As HNIs, retail investors and employees show strong interest, the issue has so far subscribed 9.14 times. The issue received bids of 8.09 crore shares against the offered 88.58 lakh shares, according to the data available on the stock exchanges. Overall, the issue was subscribed 9.11 times on the first day of bidding.
The price band for the offer has been fixed as ₹475 -500 a share. The IPO comprises a fresh issue of equity shares worth ₹206 crore and an Offer For Sale (OFS) of 85 lakh equity shares by promoters and selling shareholders who included Sanjay Lodha, Vivek Lodha, Navin Lodha, Niraj Lodha and Ashoka Bajaj Automobiles LLP. Investors can bid for a minimum of 30 equity shares. Up to 50 per cent of the offer is reserved for Qualified institutional buyers and 15 per cent for Non-Institutional Investors. Retail investors can bid up to 35 per cent of the offer.
Thumbs up from employees
Employee Portion was the most subscribed by 16.58 times, followed by Non-Institutional Investors with 18.09 times. Retail Portion was subscribed 8.77 times, whereas, Qualified Institutional Buyer Portion was subscribed 2.66 times.
As a part of IPO excercise, Netweb Technologies India on Friday garnered ₹189.015 crore from anchor investors ahead of its initial public offering, which opens to public on Monday. The company has allocated 37.80 lakh shares at ₹500 a share to anchor investors.
Anchor investors
Top foreign investors and domestic institutions such as Nomura Funds, Goldman Sachs Funds, ICICI Prudential MF & Life Insurance, HDFC MF, WhiteOak M, and Nippon MF amongst others participated in the anchor round.
Proceeds of the fresh issue to the tune of ₹32.77 crore will be used to fund capital expenditure, ₹128.02 crore to support long-term working capital, ₹22.5 crore for debt payment, besides general corporate purposes.
About Netweb Tech
The Delhi NCR-based Netweb Technologies is high-end computing solutions providers. It is one of the few original equipment manufacturers in the country and is a recipient of production-linked incentives schemes of the Union gGovernment of India. 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 Rs ₹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.
Equirus Capital and IIFL Securities are the book-running lead managers to the issue. Post-IPO, the equity shares of the company will be listed on the BSE and NSE.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.