Netweb Technologies India, a provider of computer solutions, has begun accepting public subscriptions for its initial public offering (IPO). The IPO includes a new share offering for INR 206 crore ($27.7 million) and an offer to sell up to 8.5 million shares.
Netweb Technologies IPO: On July 17, the computer solutions company Netweb Technologies India will launch its initial public offering (IPO). The IPO will stay open for a three-day subscription period before closing on July 19.
Netweb Technologies’ IPO comprises a new issuance of 206 crore shares and an offer for the sale of up to 85 lakh shares by the company’s existing promoters and shareholders.
The business has established a price range of $475-500 per share for the public offering. The business plans to raise Rs.631 crore through the IPO at the upper band pricing.
Netweb Technologies shares will be launched on the stock exchanges BSE and NSE on July 27 following the public offer. Netweb Technologies’ initial public offering (IPO) is scheduled for July 24.
The Netweb Technologies IPO lot size is 30 shares, and individual investors can apply for up to 13 lots.
Subscription status for Netweb Technologies’ first public offering
Netweb Technologies India Ltd. provides High-end Computing Solutions (HCS) to a variety of industries, including IT, IT-enabled services, entertainment, media, BFSI, national data centers, and government institutions.
The firm has 16 locations in India and a production unit in Faridabad, Haryana. NTIL’s three supercomputers have been named among the top 500 supercomputers in the world 11 times.
Revenue increased by 80% year on year to 445 crore in FY23, up from 247 crore the previous year. During the same year, its net profit more than quadrupled to 47 crore from 22.5 crore. EBITDA margins increased from 10.1% in FY21 to 15.7% in FY23.
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GMP Netweb Technologies IPO Today
According to market experts, Netweb Technologies’ IPO GMP today, or grey market premium today, is 365 per share. This indicates that Netweb Technologies’ shares are selling at a premium of 365 in the unlisted market.
Given the IPO price and the GMP today, Netweb Technologies shares are projected to be offered on the markets for $865 per share, a 73% premium.
Should you invest in Netweb Technologies’ initial public offering (IPO)?
Given its company potential, earnings growth, and fair values, most analysts have accorded the Netweb Technologies IPO a ‘Subscribe’ rating.
Financial Services Geojit
Netweb Technologies is selling at a P/E of 59.7x (FY23) at the top price band of 500, which looks to be decently priced in comparison to rivals, according to Geojit Financial Services.
“With effective management, consistent growth, an expanding product portfolio, geographical footprints, and the Government’s Digital India initiative, Netweb Technologies has an excellent chance to capitalize on the growth of the Indian IT industry.” As a result, we award a “Subscribe” grade to the issue in the short to medium term,” it said.
Alternative Broking
Choice Broking anticipates that the company’s top line will expand at a 37% CAGR from FY23 to FY25, reaching 835.4 crore in FY25. Economies of scale would increase the EBITDA and PAT margins by 132 and 162 basis points, respectively, to 17.1% and 12.2% in FY25E.
“In the provided space, there are no comparable rivals with a similar business model and product offerings to Netweb Technologies.” It is requesting a P/E multiple of 59.7x (to its FY23 earnings) at the highest price range, which appears to be on the high side. However, given the company’s long-term potential and earnings growth, we feel the requested value is appropriate,” stated Choice Broking.
As a result, it awarded the issue a “Subscribe” rating.
Shares and Finance in Marwadi
Netweb Technologies’ IPO received a “Subscribe” rating from the brokerage firm because the business is one of India’s leading HCS providers, working in a fast-growing and highly advanced field with substantial entry barriers.
“The company’s impressive track record of financial performance and consistent growth reinforces this advantageous position.” It is also accessible at a decent valuation in comparison to its rivals,” according to the brokerage.
According to Marwadi Shares and Finance, the company will list at a P/E of 59.72x with a market cap of 28,032 million, whereas its peers Syrma SGS Technology, Kaynes Technology India Ltd, and Dixon Technologies Ltd are trading at a P/E of 72x,106x,101x.
