Netweb Technologies India Ltd, a renowned provider of computing solutions is scheduled to launch its IPO on July 17. The IPO comprises a fresh issue along with an offer for sale by its existing promoters. Netweb has established itself as a reliable source for a diverse range of computing solutions and has consistently exhibited impressive financial performance. Additionally. Their eligibility for government schemes in India further strengthens their position in the market.
Netweb Technologies India Ltd, a prominent provider of computing solutions, is all set to launch its initial public offering (IPO) on July 17, inviting subscriptions until July 19. The anchor bidding is scheduled for July 14, with IPO share allotment to investors on July 24 and crediting to their demat accounts on July 26. The stock is anticipated to be listed on exchanges on July 27.
The IPO encompasses a fresh issue worth Rs 206 crore and an offer-for-sale of up to 8.5 million shares by existing promoters and shareholders. The offer-for-sale entails up to 2.86 million shares by Sanjay Lodha, up to 1.43 million each by Navin Lodha, Vivek Lodha, and Niraj Lodha, and up to 1.35 million by Ashoka Bajaj Automobiles LLP.
Out of the proceeds from the fresh issue, Rs 32.29 crore will be allocated to fund capital expenditure requirements, Rs 128 crore for long-term working capital needs, and Rs 22.50 crore for debt repayment.
On July 3, the company announced a pre-IPO placement where it raised Rs 51 crore from institutional investors, resulting in a reduction in the fresh issue size for the IPO. In this pre-IPO placement, the company allocated 10.2 lakh shares to LG Family Trust (20,000 equity shares), Anupama Kishor Patil (100,000 shares), 360 ONE Special Opportunities Fund – Series 8 (500,000 shares), and 360 ONE Monopolistic Market Intermediaries Fund (400,000 shares). The issue is being managed by Equirus Capital and IIFL Securities.
Netweb specializes in providing top-tier computing solutions (HCS) and excels in a wide range of products and services, including supercomputing systems, private cloud and HCI solutions, data center servers, Artificial Intelligence systems, enterprise workstations, and HPS solutions.
Notably, Netweb Technologies India Ltd is one of the few OEMs in India eligible to avail of production-linked incentives under the Government of India’s IT Hardware PLI Scheme. This recognition enables them to engage in server manufacturing. Additionally, they qualify for the Telecom and Networking PLI Scheme, enabling them to manufacture networking and telecom products.
In the fiscal year 2022-23, the company recorded a revenue of Rs 444.97 crore, marking a substantial increase from Rs 247.03 crore the previous year. ThTechnologies India Ltde’s net profit for the year stood at Rs 46.94 crore, up from Rs 22.45 crore last year, while the EBITDA margin witnessed an improvement from 14.37 percent to 15.89 percent.
As of May 2023, Netweb Technologies India Ltd‘s net debt amounted to Rs 28.51 crore. The company’s total order book stood at Rs 90.21 crore, and in the fiscal year 2022-23, it reached approximately Rs 71.19 crore. Throughout the year, the firm catered to 2,011 customers, including 317 repeat customers.
