Netweb Technologies plans Rs 631 crore IPO; price band at Rs 475-500
Netweb Technologies has announced a Rs 631-crore initial public offering (IPO) at a price band of Rs. 475-500 per share. The offer, comprising a fresh issue of Rs 206 crore and an offer for sale of up to 85 lakh equity shares, will be open for subscription by retail investors from 17-19 July.
About 50% of the offer is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors and 35% for retail investors. The company plans to use the proceeds for funding working capital, capital expenditure, repayment of debt and general corporate expenses. Netweb Tech offers high performance computing and supercomputing systems, private cloud and hyperconverged infrastructure (HCI), AI systems and enterprise workstations, data centre servers and high-performance storage solutions to its customers.
It develops homegrown compute and storage technologies, deploys supercomputing infrastructure and plans to expand into 5G ORAN (open radio access network) and AI-as-a-Service soon. In fiscal year 2023, supercomputing systems and private cloud and HCI verticals contributed 39.19% and 33.13% of operational revenue. The company gets more than 50% of its revenues from the government sector and the rest from large corporations.
The company also has two production-linked incentives (PLIs), IT Hardware PLI and Telecom and Networking PLI. Speaking about these, chief financial officer (CFO) Prawal Jain said, “Right now, the government has come up with PLI 2.0…So that will boost our percentages. Right now, we are into the 3% category…that will boost our PLI percentage to 5.5%.” The two-decade-old company has deployed 300+ supercomputers, 4000+ Accelerator/GPU-based AI systems and enterprise workstations, and 50+ Private
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