- Date : 17/07/2023
- Read: 3 mins
A look at the Netweb Technologies IPO including IPO details, financials, and top risks faced by the company
The Netweb Technologies India Limited IPO opened for application on 17 July 2023. For the benefit of the investors looking for information on the company and its IPO, here are 10 things you must know about the Netweb Technologies IPO.
- Netweb Technologies IPO has opened for public subscription
- The financials of the company have been promising in the last few years
- Experts have highlighted a few risks that investors must know about
- The draft red herring prospectus of the company is available on the SEBI website
- About the company: Netweb is a Delhi-based high-end computing solutions company established in 1999. Its products and services include high-performance computing and super-computing, AI, enterprise workstations, private cloud infrastructure, data centre servers, etc.
Also Read: Netweb Technologies IPO Shares Priced Between INR 475 to 500.
- Important IPO dates: The IPO opens on 17 July 2023 and closes on 19 July 2023. Allotment will be on 24 July, initiation of refunds on 25 July, share credit in demat on 26 July, and listing on 27 July 2023.
- Share details: Shares of face value Rs 2 is offered at a price band of Rs 475 to Rs 500. The lot size is 30 shares.
- Issue size: The issue size is 1.262 crore shares out of which 85 lakh is offer for sale and the rest is fresh issue.
- Promoter holding: The promoter of the company are the Lodhas, namely Sanjay, Navin, Vivek and Niraj. They have a holding of 97.8% which will become 75.45% post-IPO.
- IPO reservations: 50% of the IPO is reserved for qualified institutional buyers, 15% for non-institutional investors, and 35% for retail individual investors.
- The objective of the IPO: The proceeds will be utilised in the following manner:
-Rs 32.7 crore – capital expenditure requirement
-Rs 128 crore – Long-term working capital requirement
-Rs 22.5 crore – Borrowing pre/repayment in part or full
-Remaining – General corporate purposes
- Financials: CAGR of profit during FY 21 and 23 has been 138.2% to reach Rs 46.9 crores. Revenue AGR during the period has been 76.53% to reach Rs 445 crores. In FY23, the company’s EBITDA of Rs 70 crore was an increase of 102.4% over the previous year. Margin expansion during the period increased by 173 basis points.
- Risks: Risks of the company highlighted by experts include-
-Forex exposure is not hedged
-Low capacity utilisation in the last three financial years
-High reliance on top customers and top products
-High working capital requirement
- The book-running lead manager for the IPO are Equirus Capital and IIFL Securities, and the IPO’s registrar is Link Intime India.
Interested investors have a couple of days to analyse the company and read its prospectus submitted with SEBI. This, along with the above information, will help them to make an informed decision on this IPO.
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