Computing solutions provider Netweb Technologies India Ltd. has set a predetermined price range of Rs 475-500 per share for its upcoming initial public offering. Previously, the company announced that the IPO will commence on July 17, allowing interested investors to subscribe. The IPO subscription period will conclude on July 19, while the anchor bidding is scheduled to take place on July 14.
The IPO shares will be allotted to investors on July 24 and will be credited to their demat accounts on July 26. The stock will list on exchanges on July 27.
The IPO consists of a fresh issue of Rs 206 crore and an offer-for-sale of up to 8.5 million shares by its existing promoters and shareholders. On the upper band price, the company expected to raise Rs 632 crore via IPO.
The OFS comprises 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 used for funding capital expenditure requirements, Rs 128 crore for long-term working capital requirements and Rs 22.50 crore will be used to repay its debt.
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On July 3, the company informed that it had raised Rs 51 crore from institutional investors in a pre-IPO placement, which reduced the fresh issue size in the IPO. The company has allotted 10.2 lakh shares 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) in the pre-IPO placement.
Equirus Capital and IIFL Securities are the lead managers of the issue.
Netweb offers top-tier computing solutions (HCS) and excels in providing a range of products and services such as supercomputing systems, private cloud and HCI solutions, data centre servers, AI systems, enterprise workstations, and HPS solutions.
Netweb also holds the distinction of being among the select few OEMs in India eligible to benefit from production-linked incentives under the Government of India's IT Hardware PLI Scheme. This allows them to engage in the manufacturing of servers. They are also eligible for the Telecom and Networking PLI Scheme, enabling them to manufacture networking and telecom products.
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In FY23, the company reported a revenue of Rs 444.97 crore compared to Rs 247.03 crore a year ago. Net profit for the year stood at Rs 46.94 crore against Rs 22.45 crore last year and the EBITDA margin increased to 15.89 percent from 14.37 percent.
For FY23, the company's net debt stood at Rs 28.51 crore. As of May 2023, the company's total order book stood at Rs 90.21 crore while as of FY23, it was around Rs 71.19 crore. The firm catered to 2,011 Customers of which 317 were repeat customers during the year.
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