Netweb Technologies IPO: Netweb Technologies’ IPO, valued at Rs 631 crore, opened for subscription on July 17 and was fully subscribed in the first few hours of opening for bids. So far, on Day 3 today, the IPO has been subscribed 26.2 times. Qualified institutional buyers (QIBs) subscribed for 27.30 times of their reserved portion, demonstrating high interest in the issue. The portion for retail investors has been overbooked as investors bid 14.25 times of the shares reserved for RIIs. The NII portion has been oversubscribed 52.59 times so far. The IPO will close for subscription today. The employees bought 35.11 times the portion reserved for them.
The offering includes fresh shares worth Rs 206 crore and an offer-for-sale (OFS) of shares totaling Rs 425 crore from promoters and shareholders. The price band was set at Rs 475-500 per equity share. Netweb Technologies shares’ grey market premium soared 74% on Wednesday, commanding a premium of Rs 370 over upper end of the IPO price, implying a listing price of Rs 870 per share.
“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,” said Geojit Research.
NTIL is one of India’s leading Indian origin owned and controlled original equipment manufacturers in the space of high-end computing solutions (HCS). The company provides supercomputing systems, private cloud & HCI (hyper-converged infrastructure), data center servers, AI systems & enterprise workstations and high-performance storage (HPS) solutions. These find application across sectors like IT, ITeS, entertainment & media, banking, financial services & insurance, national data centers and government entities like defense, education and research development institutions.