Netweb Technologies nearly doubles investors' money upon listing, stock debuts at 90% premium; should investors book profits? See what analysts say
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Shares of Netweb Technologies India made a stellar debut at Dalal Street on Thursday as the stock was listed at Rs 947 on NSE, a premium of 90%, over its issue price of Rs 500. Similarly, the stock made its debut at a premium of 89% at Rs 942.50 on the BSE. According to analysts, the strong listing was in line with expectations as the company has a strong track record of growth and its financial performance has been improving in recent years
Netweb Technologies
share price today
"Netweb Technologies is well-positioned to benefit from the growth of the high-end computing market in India, as it has a strong focus on the niche business segment of high-end computing solutions. After listing at such a level, we will suggest to hold as of now with a Stop loss at around Rs 850. However, aggressive investors can still choose to buy during any subsequent dip," said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd
Should investors
book profits?
At 12:00 pm, some profit booking was observed as the Netweb Technologies stock was trading 3% down at Rs 911.40 on NSE. “We recommend to book partial profit and hold partial allotment for long term,” said Astha Jain, Senior Research Analyst, Hem Securities.
What should investors do with Netweb Tech shares?
A day prior to its listing at the bourses, shares of Netweb Technologies India were commanding a grey market premium of Rs 390-400 over its given issue price, signaling a strong listing pop to the investors on the debut. The counter kicked off the session on an even higher note compared to the expectations
Netweb Technologies GMP
The Rs 631-crore initial public offering (IPO) of Netweb Technologies, a high-end computing solution (HCS) provider, had received a robust strong response from the investors. The primary stake sale of Netweb Technologies, which was sold in the range of Rs 475-500 apiece, between July 17-19. The issue was overall subscribed 90.55 times, thanks to its niche business model
Netweb Technologies IPO
The Netweb Technologies IPO bidding was led by qualified institutional bidders (QIBs), whose quota was booked 220.69 times, highest in the category in the last decade. The portions for non-institutional bidders (NIIs), retail investors and employees were booked 83.21 times, 19.48 times, and 55.92 times, respectively
Netweb Technologies IPO
subscription details
Incorporated in 1999, Netweb Technologies provides high-end computing solutions (HCS), offering high-performance computing (supercomputing/HPC) systems; private cloud and hyper-converged infrastructure (HCI); AI systems and enterprise workstations; high-performance storage solutions; data center servers, software, and services
Netweb Technologies business
Netweb Technologies designs, manufactures, and deploys HCS comprising proprietary middleware solutions, end-user utilities, and precompiled application stack. It develops homegrown computer and storage technologies, and deploys supercomputing infrastructure to meet demands of businesses, academia, and research organizations. So far, three of their supercomputers have been listed 11 times in the world's top 500 supercomputers
Netweb Technologies'
achievements
Between March 2022 and May 2023, Netweb Technologies almost doubled its order book value from Rs 48.5 crore to Rs 90.2 crore. For FY23, revenue from operations increased by 80% to Rs 445 crore, mainly due to an increase in sales, private cloud and HCI, and supercomputing systems. Net profit for the period more than doubled year-on-year to nearly Rs 47 crore
Netweb Technologies
Financials
Equirus Capital and IIFL Securities are to book-running lead managers to the Netweb Technologies issue, while Link Intime India has been appointed as the registrar to the issue
Book-running lead
managers of IPO
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