Netweb Tech fixes IPO price at ₹475-500 a share

Netweb Technologies, a computing solutions provider, has set a price range of ₹475-500 per share for its IPO to raise ₹630 crore.

The IPO consists of a new issue of Rs 206 crore and an offer for sale of up to 8.5 million shares by the promoters and existing shareholders. On the upper range price, the company has projected a raise of ₹632 crore via IPO.

OFS includes up to 2.86 million shares of Sanjay Lodha, up to 1.43 million shares each of Navin Lodha, Vivek Lodha and Niraj Lodha and up to 1.35 million shares of Ashoka Bajaj Automobiles LLP.

From the proceeds of the new issue, ₹32.29 crore will be used to finance capital expenditures, ₹128 crore for working capital and ₹22 crore will be used to pay off its debts.

On 3 July, the company said it had raised ₹51 crore from institutional investors in the pre-IPO stage, undercutting the size of the new IPO issue. The company has allocated 10.2 thousand shares of LG Family Trust (20,000 shares), Anupama Kishor Patil (100,000 shares), 360 ONE Special Opportunities Fund – Series 8 (500,000 shares), 360 ONE Monopolistic Market Intermediaries Fund (400 000 shares) in the pre-IPO subscription.

The company announced that the IPO will begin on July 17, while the main bidding is scheduled for July 14. The IPO shares will be allocated to investors on July 24 and the stock will be listed on stock exchanges on July 27.

Netweb offers first-class computing solutions and services such as supercomputing systems, private cloud solutions, HCI solutions, data center servers, AI systems, enterprise workstations, and HPS solutions.

In FY23, the company reported revenue of ₹445 crore as against ₹247 crore a year earlier. Net profit for the year was ₹47 crore as against ₹22 crore last year, EBITDA margin increased to 15.89 per cent from 14.37 per cent.

Net debt was ₹ 29 crore as of the latest financial balance sheet. As of May, the company’s total order book was at Rs.90 crore, while in FY23, it was around Rs.71 crore.