High-end computing solutions provider Netweb Technologies is set to finalize the basis of allotment for IPO shares by July 24. Participants are eagerly anticipating this decision, particularly in light of the strong demand witnessed during the public issue.
Investors no longer have to visit any broker's office to check their share allotment status. They can conveniently do so using their mobile devices by following a few simple steps on either the BSE website or the IPO registrar's portal.
On the BSE website,
a) Select issue type 'Equity' and issue name 'Netweb Technologies India Limited'
b) Enter either 'Application Number' or 'PAN Number'
c) Check the box against the prompt 'I am not a robot' and finally, click on 'Submit' button
Alternatively on the portal of IPO registrar,
a) Select issue name 'Netweb Technologies India Limited - IPO'
b) Select and accordingly enter either 'PAN Number', or 'Application Number', or 'DP Client ID'
c) Finally click on 'Search' button
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Eligible investors will get shares in their demat accounts by July 26. Shares will be distributed proportionately given the massive demand for the public issue, so all investors may not get shares. Those who are eligible will get at least one lot of shares which is 30 shares.
The refunds will be credited to the bank accounts of unsuccessful investors by July 25.
Netweb will make its debut on the BSE and NSE on July 27, as per IPO schedule.
The Rs 631-crore maiden public issue has received an overwhelming response from investors, subscribing 90.36 times during July 17-19. Qualified institutional buyers were at the forefront and bid 228.91 times the allotted quota, the highest ever in QIB category.
High networth individuals have bought 81.81 times the portion set aside for them, retail investors 19.15 times and employees 53.13 times.
The premium for Netweb shares has increased a bit in the grey market, trading at a 75 percent premium against 70 percent a few days back over the expected final issue price of Rs 500 per share, analysts said on anonymity.
The grey market is an unofficial platform for trading in IPO shares till the listing is officially on the bourses. Generally, investors consider the grey market premium to know about the possible listing price.
The grey market premium seems to be on expected lines given the unique business model of Netweb with a growing orderbook, and consistent financial performance with an improving debt-to-equity ratio, analysts said.
The offer was comprised of a fresh issuance of shares worth Rs 206 crore and an offer for sale of Rs 425 crore by promoters. The price band for the offer was Rs 475-500 per share.
Incorporated in 1999, Netweb Technologies provides various high-end computing solutions including computing (supercomputing / HPC) systems; private cloud and hyper-converged infrastructure; AI systems and enterprise workstations; high-performance storage solutions; data center servers; and other software and service offerings which are sold under the ‘Tyrone’ brand.
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The company caters to various industries such as information technology, information technology-enabled services, entertainment and media, banking, financial services and insurance (BFSI), national data centres and government entities including the defense sector, and education and research development institutions.
Recently it forayed into new product lines - network switches and 5G ORAN appliances which are critical to the data center industry for enterprise IT and the telecommunication industry for enabling 5G services. Experts believe this will give a strong boost to earnings.
Netweb has more than doubled its profit to Rs 46.9 crore in FY23, from Rs 22.5 crore in the previous year and registered an 80 percent year-on-year increase in revenue at Rs 445 crore for FY23, while operating profit margin also improved further to 15.7 percent from 14 percent during the same period.
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