Netweb Technologies India Limited, a leading provider of high-end computing solutions (HCS), has taken the market by storm with its recent IPO launch on July 17, 2023. Closing on July 19, 2023, this IPO aims to raise a total of INR 631 crore ($84.8 million) through a combination of fresh issue of shares and offer-for-sale (OFS) by existing shareholders. With a price band set between INR 475 to INR 500 per share, investors are keen to seize this chance to be a part of Netweb Technologies’ success story.
Netweb Technologies’ Cutting-Edge Offerings in HCS
Netweb Technologies is a trailblazer in developing and deploying high-performance computing (HPC) systems, private cloud and hyper-converged infrastructure (HCI), AI systems, enterprise workstations, high-performance storage (HPS) solutions, data center servers, and software and services. Its diverse clientele includes information technology, BFSI, media, government entities, defense sector, education, and research development institutions.
A History of Excellence and Recognition
Having provided HCS solutions to prestigious clients such as IIT Jammu, NMDC Data Centre, Graviton Research Capital, and many others, Netweb Technologies boasts a solid track record of innovation and excellence. It has received numerous accolades, including the National Award for Excellence in R&D and the Best AI Startup Award by NASSCOM.
Strong Market Response and High Demand
The IPO has already garnered a whopping 90.36 times subscription, indicating strong investor confidence. The retail, qualified institutional buyers (QIBs), and non-institutional investors (NIIs) categories have also witnessed remarkable demand, with subscriptions of 15.32 times, 156.42 times, and 113.85 times respectively. In the grey market, the IPO has been trading at an impressive premium of around INR 150-160 per share.
A Glimpse into Financial Performance
Netweb Technologies has demonstrated consistent growth over the years. Its total income rose from INR 139.32 crore in FY 2019 to INR 211.15 crore in FY 2021, showing a robust CAGR of 23.34%. Profit after tax increased from INR 18.62 crore to INR 36.15 crore during the same period, with a CAGR of 38.97%. Its return on net worth (RONW) for FY 2021 stood at an impressive 24.64%.
Looking Ahead: Potential and Challenges
While the company faces challenges such as dependency on a few customers and cybersecurity threats, Netweb Technologies has taken proactive measures to mitigate these risks. With a PE ratio of 28.57-30.11, the IPO is priced competitively compared to peers like HCL Technologies and Tata Consultancy Services.
A Promising Investment Opportunity
Considering the strong growth potential in the HCS market, driven by rising demand for HPC systems, cloud computing, AI solutions, and big data, Netweb Technologies India Limited IPO offers an enticing prospect for long-term capital appreciation and exposure to the thriving HCS sector.
As the IPO closing date of July 19, 2023 approaches, investors should seize this opportunity and apply with optimism for a potentially rewarding journey with Netweb Technologies India Limited.
Netweb Technologies IPO allotment status links
BSE Website Link – https://www.bseindia.com/investors/appli_check.aspx
Intime web link — https://linkintime.co.in/mipo/ipoallotment.html