NEW DELHI: The IPO of
India, a domestic server manufacturer, will open for public subscription from July 17 to July 19, with anchor investor bidding commencing on July 14.
The company has set a price range of Rs 475-500 per share for its initial public offering (IPO) worth Rs 631 crore.
Of the total issue size, 50% is reserved for qualified institutional investors, 35% for retail investors, and the remaining 15% for non-institutional investors. Investors can bid for a minimum of 30 shares and in multiples thereof. In a pre-IPO placement round conducted last month, the company raised Rs 51 crore from institutional investors.
The IPO includes a fresh issuance of equity shares valued at Rs 206 crore, as well as an offer-for-sale (OFS) of 85 lakh equity shares by the company’s promoters. The individuals participating in the OFS are Sanjay Lodha, Vivek Lodha,
, and Ashoka Bajaj Automobiles LLP.
The company plans to utilize the proceeds from the IPO as follows: Rs 32.77 crore for capital expenditure, Rs 128.02 crore for long-term working capital support, Rs 22.5 crore for debt payment, and the remainder for general corporate purposes. The IPO is expected to generate Rs 610 crore to Rs 631 crore, depending on the lower and upper ends of the price band.
Netweb Technologies, headquartered in Delhi NCR, is a leading provider of high-end computing solutions (HCS) in the country. As one of the few original equipment manufacturers (OEMs) in India, the company has also received production-linked incentives from the Government of India.
In the fiscal year 2023, Netweb Technologies witnessed a significant increase in revenue from operations, which rose by 80% to Rs 445 crore compared to Rs 247 crore the previous year. The net profit more than doubled from Rs 22.45 crore to Rs 47 crore during the same period.
Equirus Capital and IIFL Securities are serving as the book-running lead managers for the IPO. Following the IPO, the company’s equity shares will be listed on the BSE and NSE stock exchanges.
Some of the brokerage recommendations on Netweb Technologies IPO:
ICICI Direct: ICICI Direct has given a “subscribe” rating to the IPO with a price target of ₹1,250. The brokerage firm believes that Netweb Technologies is a well-managed company with a strong track record of growth.
Angel One: Angel One has also given a “subscribe” rating to the IPO with a price target of ₹1,200. The brokerage firm believes that Netweb Technologies is well-positioned to benefit from the growth of the IT industry in India.
Sharekhan: Sharekhan has given a “subscribe with caution” rating to the IPO with a price target of ₹1,100. The brokerage firm believes that the valuations of the IPO are slightly stretched, but the company has a good growth outlook.
Motilal Oswal: Motilal Oswal has given a “neutral” rating to the IPO with a price target of ₹1,000. The brokerage firm believes that the valuations of the IPO are fair, but the company faces some risks, such as competition from new entrants.
(With inputs from agencies)