Netweb-Technologies-India-IPO
This is the world of technology with artificial intelligence creeping into every segment of our lives. With the increasing demand and dependence on AI, the need for high-computing solutions is ever-increasing as well. With this backdrop, the latest IPO offering is from the technology sector. Netweb Technologies India Limited, a high-end computing solutions company, is coming out with its IPO on 17th July 2023.
Netweb Technologies India Limited IPO will open for subscription on 17th July 2023 and will close on 19th July 2023.
Here are all the important details of Netweb Technologies India Limited, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
The key details of Netweb Technologies India Limited are as under.
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 17th July 2023 |
| IPO Closing Date | 19th July 2023 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face Value of shares | Re. 10 per share |
| IPO Price Band | Rs. 475- Rs. 500 per share |
| IPO Size | Rs. 631 crores (12,620,000 shares) |
| Offer for Sale | Rs. 425 crores (85,00,000 shares) |
| Fresh Issue | Rs. 206 crores (41,20,000 shares) |
The important dates for Netweb Technologies India Limited IPO are highlighted below:
| Event | Date |
| Opening date | 17th July 2023 |
| Closing Date | 19th July 2023 |
| Allotment date | 24th July 2023 |
| Refund Date | 25th July 2023 |
| Share Credit Date | 26th July 2023 |
| Listing Date | 27th July 2023 |
Investors can subscribe to Netweb Technologies India Limited shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investments in lots | Minimum – 1 lotMaximum – 13 lots |
| Investment amount | Minimum – Rs. 14,250 – 15,000Maximum – Rs. 1,95,000 |
| Shares | Minimum – 30Maximum – 390 |
Here’s the summary of reservation for different applicant categories in this IPO:
| Category of Investor | Reservation Percentage |
| Retail Individual Investors | 35% |
| QIB (Qualified Institutional Buyers) | 50% |
| NII (Non-Institutional Bidders) | 15% |
This IPO is a combination of an Offer for Sale and a Fresh Issue. The proceeds from the issue will be utilised in the following manner.
Netweb Technologies India Limited, established in 1999, is a provider of advanced computing solutions known as High-end Computing Solutions (HCS).
Netweb Technologies specializes in a range of HCS offerings including
The company designs, manufactures, and implements HCS by developing its own proprietary middleware solutions, precompiled application stacks, and user utilities. It also focuses on creating its own computing and storage technologies to support supercomputing infrastructure. These efforts are aimed at meeting the increasing computational needs of businesses, academia, and research organizations, particularly within India’s National Supercomputing Mission. Notably, two of Netweb Technologies’ supercomputers have been consistently ranked among the top 500 supercomputers globally. Netweb Technologies also serves notable clients such as an Indian Government space research organization and an R&D organization under the Ministry of Electronics and Information Technology, Government of India. These clients are engaged in research and development related to information technology, electronics, and associated areas, including supercomputing.
As of February 28, 2023, the company has successfully installed over 300 supercomputing systems, more than 50 private cloud and HCI setups, over 4,000 accelerator / GPU based AI systems and enterprise workstations equipped with accelerators and GPUs, and high-performance storage solutions with impressive throughput capabilities of up to 450 GB/sec.
Netweb Technologies India Limited’s financials are given in the table below:
| Year | Total Assets (Rs. in cr) | Operating Revenue (Rs. in cr) | Profit after tax (Rs. in cr) | Basic EPS | Return on Net Worth |
| Mar-2023 | 266 | 445 | 46 | Rs.9.22 | 68.01% |
| Mar-2022 | 149 | 247 | 22 | Rs.4.41 | 67.85% |
| Mar-2021 | 110 | 143 | 8 | Rs.1.62 | 46.41% |
(Source: RHP)
Some of the key strengths of Netweb Technologies India Limited Limited that investors can take note of are
| Category | Details |
| Business model | Netweb is among the leading OEMs that is of Indian origin and control for HCS with integrated design and manufacturing capabilities and is in an industry with high-entry barriers.They have a proven track record of good financial performance and consistent growth They have strong product development and innovation through R&D. |
| Other merits | Netweb has a strong and experienced management Board and Senior Management.They have a long-standing relationship with their marquee and diverse customer base. |
Here are some of the risks that investors of Netweb Technologies India Limited IPO should know:
| Category | Details |
| Business viability and profitability | The company has a high dependence on its top 10 customers for its survival and does not have any long-term contracts with them. Majority of revenues comes from a few HCS segments and any loss or reduction in demand for these segments can be detrimental to the company’s future. The company needs to protect its intellectual property rights as well as meet all the statutory requirements and failure to do so will have an adverse impact on the business. |
| Other concerns | Company belongs to an industry that is quite fragmented and may face competition from small and large players. Factors such as political, economic, regulatory, or other external influences that are outside the company’s purview and can potentially impact the business and operational outcomes in a detrimental manner. |
As of July 14th, 2023, the grey market premium for the shares of Netweb Technologies India Limited IPO is Rs. 325 as per market observers. This means the shares are expected to list at a premium of Rs. 325 per share over the listing cap price of Rs. 500.
The company is backed by strong financial performance and they also have a strong order book which could potentially sustain its projected growth. The GMP for the company highlights the initial buzz for the IPO and although the IPO is attractively priced, investors need to carefully analyse it with respect to factors like the company’s financials, risks, and industry dynamics before making any investment decisions.
Investors can invest in this IPO through the Fisdom app.
The listed peers for Netweb Technologies India Limited include Syrma SGSTechnology Limited, Kaynes Technology Limited, and Dixon Technologies (India) Limited.
Netweb Technologies India Limited has the highest Profit margin (10.55%), Highest Return on Equity (68.01%), and highest Return on Capital Employed (64.42%) as compared to its listed peers mentioned above.
One of the major concerns for the company is its reliance on a small number of customers and market segments for generating revenue.
Netweb Technologies India Limited IPO has a 35% reservation for the retail investor segment.
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