Netweb Technologies IPO: What are the signals emanating from the grey market ahead of July 27 listing?

Shares of Netweb Technologies may see a blockbuster debut on BSE and NSE on July 27. Earlier, the Rs 631-crore initial public offering (IPO) of the high-end computing solution (HCS) provider had received a robust response from investors. The public offer of Netweb Technologies—with a price band of Rs 475–500 apiece—was open for subscription from July 17 to 19.

According to analysts tracking the grey market, the company’s robust growth and its position in a niche market were key factors that attracted investors.

Abhay Doshi, Co-founder at UnlistedArena, said, “Based on the current momentum, there is anticipation of a significant premium of more than 70 per cent at the time of listing, indicating a potentially remarkable debut.”

According to IPOWatch.com, a portal that tracks unlisted firms, shares of Netweb Technologies were trading at an 80 per cent premium, or Rs 400, in the evening trade on July 26.

The issue was subscribed 90.36 times, led by qualified institutional bidders (QIBs), whose quota was booked 228.91 times, the highest in the category in the last decade. The portions for non-institutional bidders (NIIs), retail investors and employees were subscribed 81.81 times, 19.15 times and 53.13 times, respectively.

Netweb Technologies caters to marquee customers across various end-user industries such as information technology, information technology-enabled services, entertainment and media, banking, financial services and insurance (BFSI), national data centres and government entities including in the defence sector, education and research development institutions (Application Industries). It also caters to an Indian government space research organisation and an R&D organisation of the Ministry of Electronics and Information Technology, Government of India which is involved in carrying out R&D in information technology and electronics and associated areas including Supercomputing.