Netweb Technologies is open to public for subscription starting today, July 17; Should you invest?
Netweb Technologies IPO Day 1: Netweb Technologies is open to public for subscription starting today, July 17. The issue will conclude on Wednesday, July 19. This would be the third offering in the current month after Senco Gold and Utkarsh Small Finance Bank.
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Here are the key things to know about Netweb Technologies IPO:
Netweb Technologies IPO Dates
The bidding for the initial public offering will start on July 17 and the last day to apply for IPO would be July 19.
Netweb Technologies IPO Price Band
The price band for IPO has been fixed at Rs 475-500 per share.
Netweb Technologies IPO Size
The diverse range of computing solutions provider plans to raise Rs 631 crore via an initial public offering, which comprises a fresh issuance of shares worth Rs 206 crore by the company, and an offer for sale of Rs 425 crore by promoters, at an upper price band.
The offer includes a reservation of up to 20,000 equity shares for eligible employees, who will get those shares at a discount of Rs 25 per share to the final issue price.
Netweb Technologies IPO Objectives Of Issue
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Of the total fresh issue proceeds (excluding issue expenses), Rs 32.28 crore will be utilised for capital expenditure towards surface mount technology (SMT) line development, Rs 128.02 crore for long-term working capital requirements, and Rs 22.50 crore for repaying debts, and remaining for general corporate purposes.
The offer for sale money will go to promoters selling shareholders in the IPO and the company will not receive any money from the OFS portion.
Netweb Technologies IPO Lot Size
Investors can bid for a minimum of 30 equity shares and in multiples of 30 shares thereafter. That means the minimum investment by retail investors would be Rs 15,000 per lot (Rs 500 per share x 30 shares) and Rs 1.95 lakh (13 lots) would be the maximum investment they can make as they can not exceed Rs 2 lakh limit for investment in IPO.
High networth individuals (HNIs) can invest a minimum of Rs 2.1 lakh (for 14 lots) and the maximum would be Rs 9.9 lakh (for 66 lots) as they are allowed to invest from Rs 2 lakh to up to Rs 10 lakh, while the second category of HNIs, who are allowed to invest Rs 10 lakh and above, can make a minimum investment of Rs 10.05 lakh (67 lots).
Half of the offer size is reserved for qualified institutional buyers (including anchor book), 15 percent for non-institutional investors (high net worth individuals) and the remaining 35 percent for retail investors.
Netweb Technologies: About Company
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Netweb Technologies India is one of India’s leading OEMs in the space of HCS (high-end computing solutions) providing supercomputing systems, private cloud and HCI (hyper-converged infrastructure), data centre servers, AI systems and enterprise workstations and HPS solutions with manufacturing facility in Faridabad, Haryana.
Netweb Technologies IPO: GMP Today
Netweb Technologies IPO GMP today, or grey market premium today, is ₹365 per share, as per market observers. This means the shares of Netweb Technologies are trading at a premium of ₹365 a piece in the unlisted market.
Considering the IPO price and the GMP today, Netweb Technologies shares are expected to be listed at ₹865 apiece on the exchanges, which is at a premium of 73%.
Netweb Technologies IPO: What should investors do?
“The company is one of India’s leading Indian origins owned and controlled for HCS with integrated design and manufacturing capabilities. They have a long-lasting relationship with the marquee and diverse customer base,” Anand Rathi said in a research report.
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At the upper price band, the company is valuing at P/E (price-earnings) of 60 times FY23 earnings with a market capitalisation of Rs 28,010 million post issue of equity shares and return on net worth of 68.01 percent.
Anand Rathi has assigned a ‘Subscription’ rating for long term for investors as analysts believe the issue is fairly priced.
