Netweb Technologies IPO Day 3: Netweb Technologies’ Rs 631-crore IPO is open for subscription now. Today, July 19, is the last day when the offer is open for subscription. Ahead of the issue opening, Netweb Technologies raised Rs 189 crore from various anchor investors on 14 July. The IPO will close for subscription on 19 July. The date of allotment of units is projected to be 24 July, following which, the issue is expected to list on the bourses on 27 July.
Netweb Technologies IPO Subscription Status:
The IPO has been subscribed 11.24 times as of 10:30 a.m. on July 19. Institutional investors: 2.69 times. Non-institutional investors: 24.12 times. Retail investors: 10.30 times.
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
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 net worth 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 per cent for non-institutional investors (high net worth individuals) and the remaining 35 per cent for retail investors.
Netweb Technologies: About Company
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 Rs 365 per share, as per market observers. This means the shares of Netweb Technologies are trading at a premium of Rs 365 a piece in the unlisted market.
Considering the IPO price and the GMP today, Netweb Technologies shares are expected to be listed at Rs 865 apiece on the exchanges, which is at a premium of 73 per cent.
Netweb Technologies IPO: What should investors do?
Geojit Research said: “At the upper price band of Rs 500, NTIL is available at a P/E of 59.7x (FY23), which appears reasonably priced compared to peers. With effective management, consistent growth, an expanding product portfolio, geographic footprints and Digital India initiative by the Government, NTIL is well-positioned to capitalize on the Indian IT industry’s growth. Therefore, we assign a “Subscribe” rating for the issue on a short to medium-term basis.”
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