Netweb Technologies IPO Day2: Key points for Investors
Netweb Technologies, an Indian company that provides computing solutions, received a positive response from investors during the second day of its initial public offering. The offer was oversubscribed 8.77 times, with bids received for 4.1 crore equity shares against an IPO size of 88.58 lakh equity shares. The IPO will be open for three days and will end on July 19, 2023.
The company has determined the range of prices for the public offering of shares to be between ₹475 and ₹500 per share. By setting the price at the higher end of this range, the company anticipates generating ₹631 crores in funds from the initial public offering (IPO).
Netweb Technologies: IPO Details
| IPO Date | 17 July 2023 to 19 July 2023 |
| Allotment Date | July 24th, 2023 |
| Listing Date | July 24th, 2023 |
| Issue Size | 1,28,37,894 Shares |
| Price Band | Rs 475-500 per share |
| Lot Size: | 30 Shares |
| Max Bid Quantity for QIB | 12836820 Shares |
| Max Bid Quantity for NII | 6427890 Shares |
The Qualified Institutional Buyers (QIB) receive 50% of the net offer, the non-institutional bidders (NII) get 15%, and the remaining 35% is allocated to retail investors.
As of June 2023, according to the list of the world's top 500 supercomputers, which can be accessed here, AIRAWAT, developed by Netweb Technology, holds the 75th position in the rankings.
The company received bids for 32 million equity shares, while the initial public offering (IPO) was for 88.58 lakh equity shares.
Retail investors continue to be at the forefront of supporting the Issue, subscribing 8.71 times.
| Date | Qualified Institutional Buyers | Non-Institutional Investors | Retail | Employees | Total |
| Day 1:July 17, 2023 | 0.03 | 3.7 | 3.13 | 7.1 | 2.38 |
| Day 2: July 18, 2023 | 2.56 | 17.11 | 8.71 | 17.13 | 8.77 |
Netweb Technologies Financials:
| Particulars | 31st March 2023 (crores) | 31st March 2022 (crores) | 31st March 2021 (crores) |
| Revenues | 445.65 | 247.94 | 238.67 |
| Expenditure | 382.68 | 217.71 | 209.86 |
| Profits | 46.93 | 22.45 | 20.98 |
Employees have shown great enthusiasm by subscribing to 17.13 times the allocated quota, allowing them to acquire up to 20,000 shares at a discounted price of Rs 25 per share.
In the unlisted market, the company's shares are traded at a premium of Rs 380, indicating a positive market sentiment. Many Analysts have given the IPO a favorable "Subscription" rating, suggesting that it is priced appropriately for long-term investment.
Equirus Capital and IIFL Securities serve as the lead managers responsible for book-running, while Link Intime India Private Limited is the offer's registrar.
When comparing Netweb Technologie to its peers, it has shown a solid financial position and a return on net worth (RONW) of 68.01 %.
Netweb Technologies Peers Comparision:
| Company Name | Face Value(₹ per share) | Closing Price (₹per share) (As on July 17th, 2023) | Total Income for Fiscal Year 2023 (In crores) | Basic EPS | Diluted EPS | EBITDA | P/E | NAV (₹per share) | RONW |
| Netweb Technologie | 2 | N/A | 445.65 | 9.22 | 9.07 | N/A | N/A | 18.39 | 68.01% |
| Peer Group | |||||||||
| Syrma SGS Technology Limited | 10 | 489
| 2092.13 | 7.59 | 7.5 | 35.25 | 59.72 | 87.28 | 11.58% |
| Kaynes Technology India Limited | 10 | 1,849
| 1137.51 | 19.84 | 19.16 | 46.86 | 76.77 | 165.17 | 16.36% |
| Dixon Technology (India) Limited | 2 | 4,344
| 12197.62 | 42.92 | 42.62 | 50.64 | 102.97 | 215.69 | 22.36% |
(source:DRHP)
Netweb Technologie's financial performance in the fiscal year 2023 demonstrates a positive trend, with significant profits of Rs 46.93 Crores(YOY 75.77%) and a gross margin of Rs 2.71 Crores.
The company's performance shows consistent growth in sales by 74% over the past year, with revenue from the sale of products and services increasing by 79.6% and 38% respectively over the years.