Netweb Technologies, an Indian high-end computing solutions provider, is a leading name in the IT industry. It offers diverse services such as data center solutions, cloud computing solutions, and IT infrastructure solutions.
The company has experienced rapid growth in the last few years and plans to expand its operations further through its IPO.
Equirus Capital and IIFL Securities are the book-running lead managers. The registrar of the IPO is Link Intime India Private Ltd. The price band is set at ₹475-500 per share, aiming to raise ₹631 crore.
Several factors indicate the potential success of the Netweb Technologies IPO. The company boasts a strong growth history, with increasing demand for high-end computing solutions.
Reputable investment banks are underwriting the IPO, attracting tremendous investor interest.
About Netweb Technologies India Pvt. Ltd.
Netweb Technologies, founded in 1999, has emerged as a leading provider of high-end computing solutions in India.
Their vision of delivering top-notch computing solutions to businesses of all sizes has propelled the company’s growth and innovation over the years.
Netweb Technologies excels as a provider of High-end Computing Solutions (HCS). Their extensive portfolio includes a range of cutting-edge offerings.
They specialize in high-performance computing (Supercomputing / HPC) systems, AI systems and enterprise workstations, private cloud and hyper-converged infrastructure (HCI) solutions, and data center servers, along with software packages customized for their HCS solutions.
Looking ahead, the company has ambitious plans that involve expanding its product and service portfolio, increasing its global presence, and investing in research and development.
Headquartered in New Delhi, India, Netweb Technologies achieved revenue of ₹444.97 crore in FY23 compared to ₹142.78 crore in FY21.
Netweb Technologies IPO Subscription Details
The Netweb Technologies IPO includes a fresh issue of equity shares amounting to ₹206 crores. Existing shareholders and promoters are also presenting an offer-for-sale of up to 85 lakh shares.
Here are some key details related to this IPO:
| Lot Size | 30 |
| Fresh Issue Size | Rs. 206 cr. |
| IPO Price Range | Rs. 475 to Rs. 500 |
| Min Investment | Rs. 15000 |
| Face Value | Rs. 10 Per Equity Share |
| Listing Exchange | NSE, BSE |
Netweb Technologies IPO Opening Date
Here is a breakdown of the key dates and processes related to the Netweb Technologies IPO:
- IPO Opening Date: July 17, 2023 – On this date, the Netweb Technologies IPO will open for subscription, allowing investors to begin applying for shares.
- IPO Closing Date: July 19, 2023 – This signifies the final day for investors to submit their applications for the Netweb Technologies IPO. After 5 PM on this date, the subscription process will be over.
- Basis of Allotment: July 24, 2023 – The allotment basis determines the allocation of shares to different investor categories. It will be announced on this date, taking into account subscription demand and category-wise allocation.
- Initiation of Refunds: July 25, 2023 – If an oversubscription occurs or the number of applied shares exceeds the available shares, refunds are initiated for the excess amount.
- Credit of Shares to Demat Account: July 26, 2023 – On this date, the allotted shares are credited to investors’ demat accounts. Investors can view the shares in their demat holdings.
- IPO Listing Date: July 27, 2023 – This day marks the official listing and commencement of trading for Netweb Technologies shares on NSE and BSE. It signifies the company’s public debut in the market.
Netweb Technologies Financials
Netweb Technologies is a high-growth company with a strong track record of profitability. The company’s revenue CAGR is particularly noteworthy, as it is significantly higher than the average revenue CAGR for the Indian IT industry.
The company’s Return on Capital Employed (ROCE) of 200.0% and Return on Equity (ROE) are equally impressive.
| Metric/FY | FY 2019-20 | FY 2020-21 | FY 2021-22 | FY2023 |
| Total Income | 157.86 | 159.00 | 238.67 | 445.65 |
| Profit | 4.08 | 10.44 | 20.98 | 46.93 |
| Total Expenses | 152.44 | 144.61 | 209.86 | 382.68 |
| Margin (%) | 2.5% | 6.5% | 8.7% | 10.5% |
Benefits and Risks of Investing in Netweb Technologies Pvt. Ltd. IPO
Investing in Netweb Technologies IPO offers potential benefits, considering the following factors:
Benefit: Growing High-End Computing Solutions Market
The market for high-end computing solutions is experiencing significant growth.
With a projected Compound Annual Growth Rate (CAGR) of 9.3% from 2023 to 2029, the market presents promising opportunities for companies like Netweb Technologies.
Benefit: Diversified Product Portfolio
Netweb Technologies boasts a comprehensive product portfolio. It encompasses data center solutions, cloud computing solutions, and IT infrastructure solutions.
Benefit: Commitment to Innovation
Netweb Technologies showcases a strong commitment to innovation, evident in its extensive product and service portfolio.
However, it is essential to consider potential risks and downsides before investing in Netweb Technologies IPO.
Risk: High Valuation
The stock is priced at 100 times its FY23 earnings, indicating a high valuation. It may be prudent to wait for more clarity on the medium-term growth trajectory after the listing.
Risk: Competition
The high-end computing solutions market is highly competitive, with well-established players. Netweb Technologies will need to differentiate itself to thrive in this competitive landscape.
Given these factors, investors should carefully assess their risk tolerance, and investment horizon, and evaluate the company’s growth potential before investing.
Conclusion
Overall, the potential benefits of investing in Netweb Technologies IPO outweigh the risks. However, investors should carefully consider their individual circumstances before making a decision.
Like this? Then you’ll love these blogs:
