Netweb Technologies India, a computing solutions provider, has announced the opening of its initial public offering (IPO) for public subscription on July 17. The IPO is set to remain open for a period of three days, concluding on July 19. This offering provides an opportunity for investors to participate in the company’s growth and potential success. Netweb Technologies India aims to leverage its expertise in computing solutions to meet the evolving needs of the market, and the IPO is expected to generate significant interest among potential investors.
The Netweb Technologies IPO comprises a fresh issue of shares valued at ₹206 crore, as well as an offer-for-sale of up to 85 lakh shares by the company’s existing promoters and shareholders. The price band for the public issue has been set at ₹475-500 per share. With the upper price band, the company aims to raise ₹631 crore through the IPO.
Following the conclusion of the public offer, the shares of Netweb Technologies will be listed on both the BSE and NSE stock exchanges on July 27. The allotment of shares for the IPO is expected to take place on July 24. This highly anticipated IPO presents an opportunity for investors to participate in the growth prospects of Netweb Technologies.
The Netweb Technologies IPO has a lot size of 30 shares, allowing retail investors to apply for up to 13 lots. Netweb Technologies India Ltd. specializes in High-end Computing Solutions (HCS) and caters to a wide range of sectors, including IT, IT-enabled services, entertainment, media, BFSI, national data centers, and government entities.
With a manufacturing facility located in Faridabad, Haryana, and a presence in 16 offices across India, the company has established a strong operational network. Notably, Netweb Technologies’ three supercomputers have consistently made it to the prestigious list of the world’s top 500 supercomputers, an achievement they have attained 11 times.
In preparation for the IPO, the company has already secured ₹51 crore through a pre-IPO placement. Marquee institutional investors such as LG Family Trust and Anupama Kishore Patil have participated in the pre-IPO placement, subscribing at an issue price of ₹500 per share. These investments reflect the confidence and support from renowned investors in Netweb Technologies’ growth potential.
In the fiscal year 2022-23, Netweb Technologies witnessed impressive financial performance. The company’s revenue surged by 80% year-on-year to reach ₹445 crore, compared to ₹247 crore in the previous year. Net profit also doubled during the same period, increasing from ₹22.5 crore to ₹47 crore. Furthermore, the company experienced a significant improvement in its EBITDA margins, which expanded from 10.1% in FY21 to 15.7% in FY23.
In the grey market, Netweb Technologies IPO has been observed to have a GMP (grey market premium) of ₹365 per share. This indicates that the shares of Netweb Technologies are trading at a premium of ₹365 per share in the unlisted market.
Taking into consideration the IPO price and the current GMP, it is anticipated that Netweb Technologies shares will be listed at approximately ₹865 per share on the stock exchanges. This listing price represents a premium of 73% over the IPO price. The strong demand and positive market sentiment surrounding the company contribute to this expected premium.
Based on the analysis and recommendations from various analysts, the Netweb Technologies IPO has received a favorable response with a “Subscribe” rating. Analysts are optimistic about the company’s business potential, earnings growth, and reasonable valuations.
At the upper price band of ₹500, Netweb Technologies is valued at a price-to-earnings (P/E) ratio of 59.7x (FY23). This valuation is considered reasonably priced compared to its peers, according to Geojit Financial Services.
Analysts highlight several factors that support their positive outlook on Netweb Technologies. These include effective management, consistent growth, an expanding product portfolio, a wide geographic footprint, and the Indian government’s Digital India initiative. With these factors in mind, analysts believe that Netweb Technologies is well-positioned to capitalize on the growth opportunities in the Indian IT industry.
Choice Broking expects the company’s top-line to grow at a compound annual growth rate (CAGR) of 37% over FY23-25, reaching ₹835.4 crore in FY25. They also anticipate that economies of scale will lead to an expansion in the company’s EBITDA and PAT margins by 132 basis points and 162 basis points, respectively, to 17.1% and 12.2% in FY25E.
Considering the positive prospects and growth potential of Netweb Technologies, analysts recommend subscribing to the IPO on a short to medium-term basis. However, investors are advised to conduct their own research and evaluation before making investment decisions.
Analysts from Choice Broking and Marwadi Shares and Finance have both assigned a “Subscribe” rating to the Netweb Technologies IPO, citing various factors that support their positive outlook on the company.
Choice Broking acknowledges that there are no direct comparable peers in the listed space with a similar business model and product offerings as Netweb Technologies. They note that the demanded valuation, at a P/E multiple of 59.7x (based on FY23 earnings), may appear high but consider it reasonable considering the company’s business potential and expected earnings growth in the medium term.
Marwadi Shares and Finance also recommends subscribing to the IPO, emphasizing that Netweb Technologies is one of India’s leading High-end Computing Solutions (HCS) providers, operating in a rapidly evolving and technologically advanced industry with high entry barriers. They highlight the company’s impressive track record of financial performance and consistent growth.
Additionally, they note that Netweb Technologies is available at a reasonable valuation compared to its peers. They compare the company’s expected post-issue P/E ratio of 59.72x, based on FY23 earnings per share (EPS), with the P/E ratios of other similar companies in the market.
Considering the positive market position, financial performance, and reasonable valuation relative to its peers, analysts from both Choice Broking and Marwadi Shares and Finance recommend subscribing to the Netweb Technologies IPO. As always, investors are advised to conduct their own due diligence and assessment before making investment decisions.
Analysts from Choice Broking and Marwadi Shares and Finance have both assigned a “Subscribe” rating to the Netweb Technologies IPO, citing various factors that support their positive outlook on the company.
Choice Broking acknowledges that there are no direct comparable peers in the listed space with a similar business model and product offerings as Netweb Technologies. They note that the demanded valuation, at a P/E multiple of 59.7x (based on FY23 earnings), may appear high but consider it reasonable considering the company’s business potential and expected earnings growth in the medium term.
Marwadi Shares and Finance also recommends subscribing to the IPO, emphasizing that Netweb Technologies is one of India’s leading High-end Computing Solutions (HCS) providers, operating in a rapidly evolving and technologically advanced industry with high entry barriers.
They highlight the company’s impressive track record of financial performance and consistent growth. Additionally, they note that Netweb Technologies is available at a reasonable valuation compared to its peers. They compare the company’s expected post-issue P/E ratio of 59.72x, based on FY23 earnings per share (EPS), with the P/E ratios of other similar companies in the market.
Considering the positive market position, financial performance, and reasonable valuation relative to its peers, analysts from both Choice Broking and Marwadi Shares and Finance recommend subscribing to the Netweb Technologies IPO. As always, investors are advised to conduct their own due diligence and assessment before making investment decisions.
Disclaimer: The views and recommendations provided in this response are based on the statements and opinions of individual analysts and brokerage firms. They do not necessarily reflect the views of Mint or OpenAI. It is important for investors to conduct their own research and consult with certified financial experts before making any investment decisions.
The information provided here should not be considered as financial advice or a recommendation to buy or sell securities. Investing in the stock market carries inherent risks, and investors should carefully assess their own risk tolerance and investment goals before proceeding.
