Netweb Technologies IPO: Netweb Technologies’ Rs 631-crore IPO opens for subscription today, 17 July. The public offer comprises a fresh issue of shares worth Rs 206 crore and an offer-for-sale (OFS) component with promoters and shareholders offloading shares totalling Rs 425 crore. The tech player has set the price band for the IPO at Rs 475-500 per equity share. Netweb Technologies shares’ grey market premium soared 76% on Monday, commanding a premium of Rs 380 over upper end of the IPO price, implying a listing price of Rs 880 per share.
Ahead of the issue opening, Netweb Technologies raised Rs 189 crore from various anchor investors on 14 July. The IPO will close for subscription on 19 July. The date of allotment of units is projected to be 24 July, following which, the issue is expected to list on the bourses on 27 July.
Should you apply for the Netweb Technologies IPO?
Choice Broking: Subscribe
“There are no comparable peers in the listed space having a business model and product offerings similar to NTIL. At the higher price band, it is demanding a P/E multiple of 59.7x (to its FY23 earning), which seems to be on the higher side. However, considering the business potential and earning growth in the medium term, we believe the demanded valuation is reasonable. Thus we assign a “SUBSCRIBE” rating for the issue.”
Geojit Research: Subscribe
“At the upper price band of Rs 500, NTIL is available at a P/E of 59.7x (FY23), which appears reasonably priced compared to peers. With effective management, consistent growth, an expanding product portfolio, geographic footprints and Digital India initiative by the Government, NTIL is well-positioned to capitalize on the Indian IT industry’s growth. Therefore, we assign a “Subscribe” rating for the issue on a short to medium-term basis.”