Last Day of Netweb Technologies’ Initial Public Offering: Should You Buy?

The Rs 631-crore IPO of Netweb Technologies is now accepting subscriptions. As of today, July 19, the deal is no longer available for subscription. On July 14, Netweb Technologies received Rs 189 crore from a number of anchor investors in advance of the issue launch. The IPO’s subscription period will end on July 19. Units are anticipated to be distributed on July 24; the issue is anticipated to list on bourses on July 27.

Status of the Netweb Technologies IPO subscription:

As of July 19 at 10:30 a.m., 11.24 times have subscribed for the IPO. 2.69 times for institutional investors. 24.12 times for non-institutional investors. 10.30 times for retail investors.

Price Band for the IPO of Netweb Technologies

The range for the IPO’s price per share is Rs. 475–500.

IPO Size of Netweb Technologies

The supplier of a wide variety of computer solutions intends to raise Rs 631 crore via an IPO. This will be accomplished by issuing new shares worth Rs 206 crore by the firm and by the founders proposing to sell Rs 425 crore at a higher price band.

Up to 20,000 equity shares are reserved as part of the offer for qualified workers, who would receive them at a discounted price of Rs 25 per share from the issue price.

Aims of the Netweb Technologies IPO

A total of Rs 32.28 crore will be spent on capital projects to develop surface mount technology (SMT) lines, Rs 128.02 crore will be used to meet long-term working capital needs, Rs 22.50 crore will be used to pay off debts, and the remaining amount will be used for general corporate purposes.

The money from the offer for sale will go to the promoters selling IPO stockholders; no money from the OFS part will go to the firm.

Size of the Netweb Technologies IPO Lot

Investors may submit bids for a minimum of 30 equity shares and subsequently in increments of 30 shares. This implies that the lowest investment for retail investors would be Rs 15,000 each lot (Rs 500 per share x 30 shares), and the highest investment they may make will be Rs 1.95 lakh (13 lots), since they are not allowed to invest more than Rs 2 lakh in an IPO.

As they are permitted to invest from Rs 2 lakh to up to Rs 10 lakh, high net worth individuals (HNIs) can invest as little as Rs 2.1 lakh (for 14 lots) and as much as Rs 9.9 lakh (for 66 lots), while the second category of HNIs, who are permitted to invest Rs 10 lakh and above, can make a minimum investment of Rs 10.05 lakh (for 67 lots).

For eligible institutional purchasers (including anchor book), 50% of the offer size is set aside, followed by 15% for non-institutional investors (high net worth individuals), and the remaining 35% for retail investors.

Netweb Technologies: Company Information

With a manufacturing facility in Faridabad, Haryana, Netweb Technologies India is one of the country’s top OEMs in the HCS (high-end computing solutions) market. It offers supercomputing systems, private clouds, HCI (hyper-converged infrastructure), data center servers, AI systems, enterprise workstations, and HPS solutions.

GMP Today: Netweb Technologies IPO

According to market watchers, the grey market premium for Netweb Technologies’ IPO today is Rs 365 per share. In the unlisted market, this translates to a premium of Rs 365 per share for Netweb Technologies’ shares.

Netweb Technologies shares are anticipated to be listed for Rs 865 a share on the exchanges, which represents a premium of 73% when compared to the IPO price and the GMP as of today.

What should investors do about the IPO of Netweb Technologies?

According to Geojit Research, NTIL is offered at a P/E of 59.7x (FY23), which seems reasonable when compared to peers, at the top price range of Rs 500. NTIL is well-positioned to benefit from the expansion of the Indian IT sector because to competent management, continuous growth, an increasing product range, regional footprints, and the Government’s Digital India plan. As a result, we give the issue a short- to medium-term “Subscribe” grade.