Netweb Technologies Limited’s Initial Public Offering to open on Monday July 17, 2023, sets price band at ₹475 to ₹500 per Equity Share

Mr. Sanjay Lodha, CMD, Netweb Technologies India Limited in the centre with his team, at the IPO press meet

• Price Band of ₹475 – ₹500 per equity share bearing face value of ₹2 each (“Equity Shares”)
• Bid/Offer Opening Date – Monday, July 17, 2023 and Bid/Offer Closing Date – Wednesday, July 19, 2023.
• Minimum Bid Lot is 30 Equity Shares and in multiples of 30 Equity Shares thereafter.
• The Floor Price is 237.50 times the face value of the Equity Share and the Cap Price is 250 times the face value of the Equity Share.
• The Price to Earnings Ratio for Fiscal 2023 based on Diluted EPS at the Floor Price is 52.37 times and at the Cap Price is 55.13 times.

Mumbai, July 13, 2023: Delhi-NCR-based Netweb Technologies Ltd is country’s leading high-end computing solutions (HCS) provider, with fully integrated design and manufacturing capabilities has fixed the price band at ₹475 to ₹500 per Equity Share for its maiden public offer. The initial public offering (“IPO” or “Offer”) of the Company will open on Monday, July 17, 2023, for subscription and closes on Wednesday, July 19, 2023. Investors can bid for a minimum of 30 Equity Shares and in multiples of 30 Equity Shares thereafter.

On June 30, 2023, the company, in consultation with the lead bankers to the issue, allotted 1.02 million shares to raise Rs 51 crore at an issue price of Rs 500 in a Pre-IPO placement from institutional investors and were allotted 20,000 equity shares to LG Family Trust, 1,00,000 equity shares to Anupama Kishore Patil, 5,00,000 equity shares to 360 ONE Special Opportunities Fund- Series 8, and 4,00,000 equity shares to 360 ONE Monopolistic Market Intermediaries Fund.

The public issue with a face value of Rs 2 per equity share comprises of Rs 206 crore of fresh issue and an offer for sale of 8.5 million equity shares. The offer also includes a reservation for a subscription by eligible employees.

The proceeds from its fresh issuance will be utilized to the extent of Rs. 32.29 crore for funding its capital expenditure, Rs 128.02 crore for funding its long term working capital requirements, Rs 22.50 crore for repayment or pre-payment, in full or in part, of certain of its outstanding borrowings and general corporate purposes.

The Company through its IPO will fetch Rs 609.75 crore – Rs 631 crore at the lower and upper end of the price band.

Netweb Technologies is one of the few OEMs in the country is a recipient of production linked incentives schemes of the Government of India under the ‘Make in India’ policy for IT Hardware (IT Hardware PLI Scheme) and Telecom and Networking Products Manufacturing in India (Telecom and Networking PLI Scheme).

Netweb has both design and manufacturing capabilities inhouse and have undertaken installation of over 300 supercomputing systems and over 4000 accelerator / GPU based AI systems and enterprise workstations as of May 2023. Intel, Samsung, AMD, NVIDIA are some of the companies it collaborates with to innovate on product offerings.

It is a high-end computing solutions (HCS) provider based in India catering to many Indian and multinational Customers based in India and grow its geographical footprint in Europe, Middle East and Africa (EMEA).

Between March 31, 2022 and May 31, 2023 it has almost doubled its order book value from Rs 48.56 crore to Rs 90.205 crore.

For the fiscal year 2023, the company’s revenue from operations increased 80.13% to Rs 444.97 crore against Rs 247.03 crore a year ago primarily due to an increase in the sale of Products and Services, Private cloud and HCI, Supercomputing systems, High Performance Storage Solutions and AI systems and Enterprise Workstations. Net profit for the period increased 109.04% to Rs 46.94 crore as against Rs 22.45 crore last year.

Equirus Capital Private Limited and IIFL Securities Limited are the book running lead managers and Link Intime India Private Limited is the registrar for the issue.

Issue Size of the IPO based on the upper and lower end of the price band

RHP Link: https://www.sebi.gov.in/filings/public-issues/jul-2023/netweb-technologies-india-limited-rhp_73853.html