The much-anticipated initial public offering (IPO) of Netweb Technologies is set to make waves in the market. As a leading high-end computing solutions (HCS) provider based in Delhi, Netweb Technologies aims to raise a substantial amount of ₹631 crore through this IPO. With the issue price fixed at ₹475 to ₹500 per equity share, investors are eagerly awaiting this opportunity to capitalize on the company’s growth potential.
Key Highlights of the Netweb Technologies IPO
Here are ten key highlights that potential investors should be aware of before considering purchasing Netweb Technologies IPO shares:
Subscription Period and Closure: The IPO will be open for a three-day subscription period, commencing on Monday and closing on Wednesday.
IPO Fundraising: Netweb Technologies aims to raise ₹631 crore through this IPO. The company has fixed the issue price range at ₹475 to ₹500 per equity share.
Lot Size and Minimum Investment: The lot size for this IPO is set at 30 shares. Retail investors are required to make a minimum investment of ₹15,000, as reported by LiveMint.
IPO Allotment and Timelines: The IPO allotment is scheduled to take place on July 24. Refunds, if any, will be initiated on July 25, and the shares will be credited to investors’ demat accounts on July 26. The proposed equity shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on July 27.
Anchor Investors’ Participation: Prior to the IPO, anchor investors had the opportunity to bid on Friday. This offering consists of a fresh issue of shares worth ₹206 crore and an offer-for-sale of up to 85 lakh shares.
Utilization of Proceeds: The proceeds from the fresh issue of shares will be allocated towards funding capital expenditure worth ₹32.3 crore. Additionally, a portion of the funds, approximately ₹128.02 crore, will be utilized for long-term working capital requirements. Furthermore, ₹22.5 crore will be allocated towards repaying outstanding borrowings.
Impressive Financial Performance: Netweb Technologies, valued at ₹94 crore as of March 31, has showcased substantial growth in recent years. In FY23, the company recorded profits of ₹46.9 crore, a significant increase from ₹22.45 crore in FY22 and ₹8.23 crore in FY21.
IPO Allocation: The total IPO size has been divided among different categories of investors. Qualified institutional buyers (QIBs) have been allocated 50% of the total IPO size. Non-institutional investors (NII) have been allotted 15%, while the remaining 35% has been reserved for retail individual investors (RIIs).
Selling Stakeholders: The selling stakeholders in this IPO are the promoters. Sanjay Lodha plans to sell up to 2,860,000 equity shares, while Ashoka Bajaj Automobiles LLP intends to offload 1,350,000 equity shares. Additionally, Navin Lodha, Vivek Lodha, and Niraj Lodha will each sell 1,430,000 equity shares.
Book-Running Lead Managers and Registrar: Equirus Capital and IIFL Securities serve as the book-running lead managers (BRLMs) for this IPO. Link Intime India acts as the registrar.
With these key highlights and relevant information, potential investors can make informed decisions regarding their participation in the Netweb Technologies IPO. This IPO presents a unique opportunity to be part of the growth story of an industry-leading high-end computing solutions provider.