Netweb Technologies to launch initial public offering on 17 July; 10 key pointers here
India's leading high-end computing solutions provider, Netweb Technologies, is set to launch its IPO on July 17. The IPO will consist of fresh issues worth ₹206 crore and an offer for sale of up to 85 lakh equity shares.
Leading high-end computing solutions (HCS) provider in India, Netweb Technologies is set to launch its initial public offering (IPO) on July 17. The IPO will be open for a 3-day subscription and will close on July 19. Post the public offer, the company will list its proposed equity shares on the stock exchanges BSE and NSE.
Here are the 10 key highlights of the IPO1:
IPO size: The IPO consists of fresh issues worth ₹206 crore and an offer for sale (OFS) of up to 85 lakh equity shares. It needs to be noted that as per the red herring prospectus, the company said, in consultation with the BRLMs, undertook a Pre-IPO Placement of 1,020,000 equity shares at an issue price of ₹500 per equity share (including a premium of ₹ 498 per equity share) aggregating ₹ 51 crore (Pre-IPO Placement). Hence, the size of the fresh issue is reduced by ₹51 crore from the earlier ₹257 crore.
Reservations: Under the IPO, the company reserved up to 20,000 equity shares for subscription by eligible employees.
Price band: The lower and upper price bands of the IPO will be announced in due course. Also, the lot size will be announced accordingly. However, the proposed equity shares offered in the IPO will have a face value of ₹2 each.
Selling shareholders: Among promoters to participate in the offer for sale, Sanjay Lodha will sell up to 2,860,000 equity shares; Navin Lodha, Vivek Lodha, and Niraj Lodha will offload 1,430,000 equity shares each. Also, Ashoka Bajaj Automobiles LLP will sell 1,350,000 equity shares.
IPO dates: The public offer will open on July 17 and will close on July 19. Ahead of the IPO, anchor investors will be allowed to bid on July 14.
Investors detail: 50% of the total IPO size is reserved for qualified institutional buyers (QIBs), while 15% of the portion is kept for non-institutional investors (NII) and the remaining 35% is to be allotted for retail individual investors (RIIs).
Proceeds: Netweb will use the proceeds from the fresh issue for funding capital expenditure requirements worth ₹32.3 crore, while a further ₹128.02 crore will be used for funding long-term working capital requirements. Also, ₹22.5 crore will be utilized for repayment of outstanding borrowings. Additionally, a portion of the proceeds will be used for general corporate purposes.
Listing and other important dates: The proposed equity shares will be listed on stock exchanges like BSE and NSE. As per the Chittorgarh website, the basis of allotment of equity shares in Netweb IPO will be done on July 24, while initiation of refunds will be carried out on July 25. Further, the proposed equity shares will be credited to demat accounts by July 26 and the listing date will accordingly be July 27.
Managers: Equirus Capital and IIFL Securities are the book-running lead managers (BRLM) of the IPO, while Link Intime India is the registrar of the issue.
Financial results: By the end of FY23, the company's revenue from operations jumped to ₹444.97 crore as against ₹247 crore in FY22 and ₹142.78 crore in FY21. Meanwhile, FY23 profits stood at ₹46.9 crore versus ₹22.45 crore in FY22 and ₹8.23 crore in FY21. As of March 31, 2023, the company's net worth is around ₹94 crore.
The company's HCS offerings comprise (i) high-performance computing (Supercomputing / HPC) systems; (ii) private cloud and hyper-converged infrastructure (HCI); (iii) AI systems and enterprise workstations; (iv) high-performance storage (HPS / Enterprise Storage System) solutions; (v) data centre servers; and (vi) software and services for our HCS offerings.
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