Netweb Technologies IPO subscribed 2.33 times on Day 1 led by Employee and NII

The Initial Public Offering (IPO) of Delhi-NCR-based Netweb Technologies Ltd, country's leading high-end computing solutions (HCS) provider, with fully integrated design and manufacturing capabilities was fully subscribed in a little over four hours as investors from all categories showed a lot of interest.

The issue received bids of 2,06,05,890 shares against the offered 88,58,630 equity shares, at a price band of ₹475-500, according to the data available on the stock exchanges. Overall, the issue was subscribed 2.33 times on the first day of bidding.

Employee Portion was the most subscribed with a subscription of 6.60 times, followed by Non-Institutional Investors with 3.61 times. Retail Portion was subscribed 3.00 times, whereas, Qualified Institutional Buyer Portion was subscribed 0.03 times. The issue kicked off for subscription on Monday, July 17, 2023 and will close on Wednesday, July 19, 2023.

Last week, Netweb Technologies India Ltd had raised Rs 189 crore from anchor investors. Foreign Investors and Domestic Institutions who participated in the anchor were Nippon India Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Aditya Birla Sun Life Mutual Fund, Axis Mutual Fund, White Oak Capital Fund, Motilal Oswal Mutual Fund, Tata Mutual Fund and Franklin India Mutual Fund.

Broking houses like Nirmal Bang, Reliance Securities, Geojit Financials, BP Equities (StoxBox), Choice Broking, Arihant Capital, Ventura Securities, Indsec Securities, Hensex Securities, Hem Securities, Investmentz, and Marwadi Financial Services have given a "SUBSCRIBE" rating to the issue.

Based on brokerage recommendations, analysts highlight NTIL's exceptional performance, strong positioning among peers, comprehensive range of high-performance computing products, and ambitions for global expansion. The company's unique business model, leading position in the controlled OEM space for HCS offerings, plans for manufacturing facility expansion, growing order book, consistent financial performance, and reasonable valuation compared to peers are all factors contributing to the positive recommendations. Overall, analysts believe that NTIL's strong fundamentals, robust product portfolio, and growth opportunities make it an attractive investment option.

Equirus Capital Private Limited and IIFL Securities Limited are the book running lead managers and Link Intime India Private Limited is the registrar for the issue.

Source : Equity Bulls

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