Equirus Wealth
27 Jul 2023 • 5 min read
Equirus has successfully overseen the initial public offering (IPO) of Netweb Technologies India as the lead left book-running manager, marking its triumphant listing on the Stock Exchange today at a notable premium of approximately 89%. Equirus played a pivotal role in helping Netweb Technologies India to harness capital from the market.
The company's stock was introduced at Rs 947 on the NSE, showcasing a substantial premium of 89.4% over the set issue price of Rs 500, while its BSE debut was equally striking, opening at Rs 942.5, reflecting an increase of 88.5%.
Investors demonstrated extraordinary enthusiasm for the public issue, resulting in a remarkable subscription rate of 90.55 times. The demand was strikingly high across various categories, including a staggering 220.10 times in the Qualified Institutional Buyers (QIB) category (excluding Anchor), a robust 84.21 times in the Non-Institutional Investors (NII) category as of July 19, 2023, and a healthy 19.59 times in the retail segment.
Netweb Technologies, a leading high-end computing solutions (HCS) provider in India, is in the spotlight as its initial public offering (IPO) subscription rates have skyrocketed. With a diverse product range that includes private cloud and HCI solutions, supercomputing systems, enterprise workstations, and more, Netweb's IPO has drawn massive attention from various classes of investors. Here's an in-depth look at the subscription's performance, the objectives of the issue, the company's profile & key points.
Incorporated in 1999, Netweb Technologies has become a leader in customized computing systems that address the high-end computational requirements of various clients. The company's wide range of products includes supercomputing systems, private cloud infrastructure, AI systems, enterprise workstations, storage solutions, and data center servers.
The Initial Public Offering (IPO) of Netweb Technologies India has garnered significant attention in the financial market. Here are some key details:
Post-IPO, the company's market capitalization stands at ₹2803 crore, with the promoter holding 75.4%.
Netweb Technologies has shown growth across key financial metrics:
Here are some insights based on questions raised regarding the company and the IPO:
Management seems stable and trustworthy, with over 50 years of combined leadership at Netweb Technologies, complying with SEBI guidelines.
On Friday, July 14, Netweb collected ₹189.01 crores from anchor investors such as Nomura Funds, Goldman Sachs Funds, Eastspring Investments India Fund, HDFC Mutual Fund, and Axis Mutual Fund.
Netweb Technologies' IPO was listed on the bourses at a premium, with the NSE price at ₹947 and the BSE at ₹942.50 per share, 89.4% higher than the issue price.
Aggressive investors might consider buying during any subsequent dip.
Netweb Technologies' IPO reflects the optimism and confidence that investors have in the company's future. With a strong track record of growth and a focus on high-end computing solutions, the company is well-positioned to leverage the growing tech market in India. However, careful consideration must be given to its reliance on major customers and the competitive landscape.
With a robust financial performance and transparent management, Netweb Technologies seems to be on a promising path, offering attractive prospects for investors and shareholders alike. The strong listing and the grey market premium of +394 further underscore the interest in this IPO.
The company's contribution to India's technological advancements and its strong position in a niche market makes it an exciting option for those looking to invest in the country's burgeoning tech industry. Whether to hold, sell, or buy, will ultimately depend on individual investment strategies and market trends, but Netweb Technologies India certainly seems poised for growth and success in the years to come.
Wealth Services
Top Mutual Funds
3Y Returns
Nippon India CPSE ETF AUM: ₹46,099 Cr | 45.18 % |
Bank of India Credit Risk Fund AUM: ₹115 Cr | 39.25 % |
Kotak Nifty PSU Bank ETF AUM: ₹1,453 Cr | 38.24 % |
Nippon India ETF Nifty PSU Bank BeES AUM: ₹2,502 Cr | 38.23 % |
ICICI Prudential Bharat 22 ETF AUM: ₹20,550 Cr | 35.43 % |