The IPO of Netweb Technologies commences today: Here’s everything you need to know.

0
2116
Netweb Technologies has set a price range of Rs 475-500 per share for its offering
Netweb Technologies has set a price range of Rs 475-500 per share for its offering


Netweb Technologies India, a domestic server manufacturer, has commenced its initial public offering (IPO) for public subscription today. The IPO will remain open until Wednesday, July 19. The Delhi-based provider of computing solutions aims to raise Rs 610 crore to Rs 631 crore through the IPO, with the lower and upper price band values set accordingly.

The IPO seeks to generate Rs 631 crore, including Rs 206 crore from fresh equity and Rs 425 crore from the offer for sale (OFS) of 8.5 million shares. The selling shareholders in the OFS include Sanjay Lodha, Vivek Lodha, Navin Lodha, Niraj Lodha, and Ashoka Bajaj Automobiles LLP.

Netweb Technologies has fixed the price band for the issue at Rs 475-500 per share. Qualified institutional investors have been allocated 50% of the issue size, while retail investors have a reservation of 35%, and the remaining 15% is reserved for non-institutional investors.

Investors participating in the Netweb Technologies IPO can bid for a minimum of 30 shares and in multiples thereof.

Prior to the IPO, the company raised Rs 189 crore from anchor investors, allocating 37.80 lakh shares to them at Rs 500 per share. Prominent participants in the anchor round included Nomura Funds, Goldman Sachs Funds, ICICI Prudential Mutual Fund (MF), HDFC MF, WhiteOak MF, and Nippon MF, among others.

In a pre-IPO placement round last month, the company secured Rs 51 crore from institutional investors.

Netweb Technologies witnessed a significant growth in revenue from operations in FY23, with an 80% increase to Rs 445 crore compared to Rs 247 crore in the previous year. Its net profit also doubled to Rs 47 crore from Rs 22.45 crore in the year-ago period.

The company is scheduled to make its stock market debut on July 27.

Gyani Labs