Netweb Tech IPO to open on July 17, Check price band, lot size and other details

The initial public offering (IPO) of Netweb Technologies India will open for subscription on Monday, July 17. The company is looking to sell its shares in the price band of Rs 475-500 apiece. Interested investors are required to bid for at least one lot of 30 equity shares and its multiples thereafter. The three-day stake sale will conclude on Wednesday.

Incorporated in 1999, Netweb Technologies India provides high-end computing solutions (HCS). It offers high-performance computing (supercomputing/HPC) systems; private cloud and hyper-converged infrastructure (HCI); AI systems and enterprise workstations; high-performance storage (HPS/enterprise storage system) solutions; data center servers, softwares and services .

The company is looking to raise Rs 631 crore, which includes a fresh equity share sale amounting to Rs 206 crore and an offer-for-sale (OFS) of up to 85 lakh equity shares by promoters, aggregating to Rs 425 crore. Promoters Sanjay Lodha, Navin Lodha, Vivek Lodha, Niraj Lodha and Ashoka Bajaj Automobiles LLP would be participating in the OFS.

The company, in consultation with lead managers of the issue, had undertaken a pre-IPO placement of 10.20 lakh equity shares to LG Family Trust, Anupama Kishor Patil and two funds 360 ONE WAM at a issue price of Rs 500 per share, aggregating to Rs 51 crore. This resulted in reduction of fresh issue size to Rs 206 crore from Rs 257 crore earlier.

Net proceeds from the fresh issue will be utilised towards funding capital expenditure requirements of the building for the surface mount technology (SMT) line and interior development, and purchase of machinery for the new SMT production line; funding of long-term working capital requirements, prepayment of certain borrowings and general corporate purposes.

Netweb Technologies designs, manufactures and deploys HCS comprising proprietary middleware solutions, end-user utilities, and precompiled application stack. It develops homegrown compute and storage technologies, and deploys supercomputing infrastructure to meet demands of businesses, academia, and research organizations.

For the financial year ended on March 31, 2023, the company reported a net profit at Rs 46.94 crore, with a total revenue at Rs 445.65 crore. Its net profit stood at Rs 22.45 crore for the year, with a total revenue at Rs 247.94 crore in the previous financial year (FY22).

The company has reserved 50 per cent of offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of the allocations. Remaining 35 per cent of the portion of the offer shall be allocated to the retail bidders.

Equirus Capital and IIFL Securities are to book-running lead managers to the issue, while Link Intime India has been appointed as the registrar to the issue. Shares of Netweb Technologies will be listed at both BSE and NSE with July 27 as the tentative date of listing.

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