Netweb Tech files draft IPO papers to list Rs 275-crore fresh issue

IPO

Netweb Technologies India Ltd has filed the draft papers with the Securities Exchange Board of India (Sebi) to raise funds through an initial public offering.

The IPO will involve fresh issue of shares worth Rs 275 crore and an offer-for-sale of up to 8.50 million shares by the company's existing shareholders and promoters.

The OFS will include up to 2.86 million shares by Sanjay Lodha, up to 1.43 million shares each by Navin Lodha, Vivek Lodha, and Niraj Lodha, and up to 1.35 million shares by Ashoka Bajaj Automobiles Pvt Ltd.

Equirus Capital and IIFL Securities are the lead managers to the issue.

Around Rs 32.77 crore from the funds raised from the issue will be used for civil construction of the building for the surface mount technology (SMT) line, interior development, and equipping the new SMT line facility by purchasing necessary equipment and machinery.

The company plans to allocate Rs 128 crore for its working capital requirements, and Rs 22.50 crore for repayment of its outstanding debt.

Netweb is a provider of high-end computing solutions (HCS) in India, boasting complete integrated design and manufacturing capabilities. As a leading Indian-owned and controlled OEM in the HCS market, it specialises in supplying supercomputing systems, private cloud and HCI, data centre servers, AI systems and enterprise workstations, and HPS solutions.

In FY22, the company reported a substantial on-year increase in revenue, from Rs 142.79 crore to Rs 247.03 crore. Net profit for the period jumped from Rs 8.23 crore to Rs 22.45 crore and the EBITDA margin increased to 14.37 percent from 11.13 percent.

As of September 2022, the company's total borrowings amounted to Rs 27.59 crore. As of February 2023, the company's total order book stood at Rs 98.12 crore, down from Rs 127.99 crore in FY22.