Netweb Technologies IPO: RHP flags documentary evidence of 2 promoters 'not traceable’; check all key risk factors

livemint.com:

Netweb Technologies IPO: Ahead of the initial public offering (IPO) of computing solutions provider Netweb Technologies India which is set to hit the D-Street on July 17, the company's red herring prospectus (RHP) has highlighted a potential red flag for investors. According to the RHP, the documentary evidence of educational qualifications of two of its promoters or directors of the company - included in the company's ‘management’ is not traceable.

‘’The degree certificates pertaining to the educational qualifications of our Promoters who are also the Directors of our Company, Navin Lodha (being the bachelors’ degree in commerce from Shaheed Bhagat Singh College, University of Delhi), and Vivek Lodha (being the bachelors’ degree in commerce from Shaheed Bhagat Singh College, University of Delhi) are not traceable,'' said Netweb Tech in its RHP. It further adds that the promoters have taken the requisite steps to obtain the relevant supporting documentation, including by making a written application to the aforementioned universities/ college, ‘’they have not been able to procure the same,'' as per the statement in the RHP.

‘’Accordingly, our Company has placed reliance on affidavits furnished by these Promoters to us and the Book Running Lead Managers, and copies of the correspondences with the relevant university, to disclose the details of their educational qualifications in this Red Herring Prospectus,'' said Netweb Tech. The RHP has been filed with the stock exchanges and capital markets regulator Securities and Exchange Board of India (SEBI).