Netweb Technologies IPO INTRODUCTION:
Netweb Technologies, a leading provider of high-end computing solutions, is all set to launch its maiden public offering in the coming week. This would mark the company’s third IPO in the current month, following the successful listings of Senco Gold and Utkarsh Small Finance Bank.
If you are considering investing in the Netweb Technologies IPO, here are ten crucial things you should know before making a decision:
1. Netweb Technologies IPO Dates:
The initial public offering will open for bidding on July 17 and close on July 19. It’s important to note these dates to ensure you don’t miss the opportunity to participate.
2. Netweb Technologies IPO Price Band:
The IPO price range has been set at Rs 475-500 per share. This indicates the minimum and maximum prices at which you can bid for the company’s shares.
3. Netweb Technologies IPO Size:
Netweb Technologies aims to raise Rs 631 crore through its IPO. This includes issuing fresh shares worth Rs 206 crore and an offer for sale of Rs 425 crore by the existing promoters.
4. Objectives Of Issue:
The funds raised from issuing fresh shares will be utilized for specific purposes. These include investing Rs 32.28 crore in capital expenditure for surface mount technology (SMT) line development, allocating Rs 128.02 crore for long-term working capital requirements, and using Rs 22.50 crore to repay debts. The rest of the funds will be utilized for general corporate objectives.
5. Netweb Technologies IPO Lot Size:
Investors have the option to bid for at least 30 equity shares and can increase their bid in multiples of 30 shares thereafter. For retail investors, the minimum investment would be Rs 15,000 for a single lot (30 shares), and the maximum investment cannot exceed Rs 2 lakh due to regulatory limits. High net worth individuals (HNIs) have different investment ranges based on their eligibility.
6. Netweb Technologies Company Profile:
Netweb Technologies India is a prominent original equipment manufacturer (OEM) that specializes in providing top-tier computing solutions. Its product portfolio includes supercomputing systems, private cloud, HCI (hyper-converged infrastructure), data centre servers, AI systems, and enterprise workstations. The company operates its manufacturing facility in Faridabad, Haryana. It caters to various Indian and multinational customers, and it’s planning to expand its geographical footprint in Europe, the Middle East, and Africa (EMEA). The company has recently diversified into new product lines, such as network switches and 5G ORAN appliances.
7. Netweb Technologies Financials:
Netweb Technologies has exhibited robust financial performance in recent years. Its profits have grown at a CAGR of 138.2 percent from FY21 to FY23, reaching Rs 46.9 crore in the financial year ending in March 2023. The company’s revenue has also seen significant growth, achieving a CAGR of 76.53 percent, with revenues of Rs 445 crore in FY23. The company’s operating performance has been impressive, with an EBITDA of Rs 70 crore and a margin expansion of 173 bps in FY23.
8. Promoters and Management:
The company’s promoters hold 97.8 percent of the shares, while the remaining portion is held by public shareholders. Key roles in the management include Sanjay Lodha as the Chairman and Managing Director and Navin Lodha, Vivek Lodha, and Niraj Lodha as whole-time directors.
9. Risks and Concerns:
As with any investment, there are potential risks involved in the Netweb Technologies IPO. Some of these risks include foreign currency exposure, low-capacity utilization in recent fiscal years, dependence on a few key customers, and the company’s high working capital requirement.
10. Allotment and Listing Dates:
The basis of IPO share allotment will be finalized by July 24, and eligible investors will have the shares credited to their demat accounts by July 26. Refunds for unsuccessful investors will be transferred to their bank accounts by July 25. The trading of Netweb Technologies’ equity shares will commence on July 27, as per the IPO schedule.
The information provided in this article is for general informational purposes only and should not be considered as financial advice. Investing in financial products, including IPOs, involves inherent risks, and past performance is not indicative of future results. Readers are encouraged to conduct their own research, seek advice from qualified financial advisors, and carefully consider their individual financial circumstances before making any investment decisions. The author and the platform hosting this article shall not be held liable for any financial losses or damages incurred as a result of using or relying on the information provided in this article.
What is the date for Netweb Technologies IPO launch?
Netweb Technologies India’s IPO bidding is set to begin on July 17, with the last day for applications being July 19.
What is the price range for the IPO shares?
The price band for the IPO shares has been fixed at Rs 475-500 per share.
How much does Netweb Technologies aim to raise through the IPO?
Netweb Technologies plans to raise Rs 631 crore through the IPO. This includes issuing fresh shares worth Rs 206 crore and an offer for sale of Rs 425 crore by the existing promoters.
What are the objectives for the funds raised from the fresh issue?
The funds raised from the fresh issue will be utilized for various purposes. Rs 32.28 crore will go towards capital expenditure for surface mount technology (SMT) line development, Rs 128.02 crore for long-term working capital requirements, Rs 22.50 crore for debt repayment, unallocated funds will be utilized for general corporate objectives.
What are some key financial highlights of Netweb Technologies?
Netweb Technologies has shown impressive financial performance, with profits growing at a CAGR of 138.2 percent from FY21 to FY23, reaching Rs 46.9 crore in FY23. The company’s revenue also witnessed significant growth, achieving a CAGR of 76.53 percent, with revenues of Rs 445 crore in FY23. In FY23, the EBITDA witnessed an impressive growth of 102.4 percent, amounting to Rs 70 crore, accompanied by a significant margin expansion of 173 basis points.