Employees, HNIs & Retail Investors Evince Interest
Analysts believe that Netweb’s strong fundamentals, robust product portfolio, and growth opportunities make it an attractive investment option
MUMBAI, July 17 (The CONNECT) – The Initial Public Offering (IPO) of high-end computing solutions (HCS) provider Netweb Technologies Ltd, was fully subscribed in little over four hours as investors from all categories evinced interest.
The issue received bids of 2,06,05,890 shares against the offered 88,58,630 equity shares, according to the data available on the stock exchanges. Overall, the issue was subscribed 2.33 times on the first day of bidding.
Employee Portion was the most subscribed with a subscription of 6.6 times, followed by Non-Institutional Investors with 3.61 times. Retail Portion was subscribed thrice over, whereas, Qualified Institutional Buyer Portion was subscribed 0.03 times. The issue kicked off for subscription today at a price band of Rs 575-Rs 500 and will close on Wednesday, July 19, 2023.
Last week, Netweb Technologies India Ltd had raised Rs 189 crore from anchor investors. Foreign Investors and Domestic Institutions who participated in the anchor were Nippon India Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Aditya Birla Sun Life Mutual Fund, Axis Mutual Fund, White Oak Capital Fund, Motilal Oswal Mutual Fund, Tata Mutual Fund and Franklin India Mutual Fund.
Broking houses like Nirmal Bang, Reliance Securities, Geojit Financials, BP Equities (StoxBox), Choice Broking, Arihant Capital, Ventura Securities, Indsec Securities, Hensex Securities, Hem Securities, Investmentz, and Marwadi Financial Services have given a “SUBSCRIBE” rating to the issue.
Based on brokerage recommendations, analysts highlight NTIL’s exceptional performance, strong positioning among peers, comprehensive range of high-performance computing products, and ambitions for global expansion. The company’s unique business model, leading position in the controlled OEM space for HCS offerings, plans for manufacturing facility expansion, growing order book, consistent financial performance, and reasonable valuation compared to peers are all factors contributing to the positive recommendations. Overall, analysts believe that NTIL’s strong fundamentals, robust product portfolio, and growth opportunities make it an attractive investment option.
Equirus Capital Private Limited and IIFL Securities Limited are the book running lead managers and Link Intime India Private Limited is the registrar for the issue.
Netweb Technologies is one of the few OEMs in the country is a recipient of production linked incentives schemes of the Government of India under the ‘Make in India’ policy for IT Hardware (IT Hardware PLI Scheme) and Telecom and Networking Products Manufacturing in India (Telecom and Networking PLI Scheme).
Netweb has both design and manufacturing capabilities inhouse and have undertaken installation of over 300 supercomputing systems and over 4000 accelerator / GPU based AI systems and enterprise workstations as of May 2023. Intel, Samsung, AMD, NVIDIA are some of the companies it collaborates with to innovate on product offerings. It is a high-end computing solutions (HCS) provider based in India catering to many Indian and multinational Customers based in India and grow its geographical footprint in Europe, Middle East and Africa (EMEA)
