Netweb Technologies, a leading high-end computing solutions provider, is all set to launch its initial public offering (IPO) for subscription today, July 17 2023. Here are the key highlights and insights you should know before considering your investment
Key highlights of Netweb Technologies IPO
- Netweb Technologies, a high-end computing solutions provider, is launching its IPO.
- The IPO dates are July 17 to July 19, with a price band of Rs 475-500 per share.
- The IPO aims to raise Rs 631 crore, including a fresh issuance of shares and an offer for sale by promoters.
- Netweb Technologies plans to utilize the IPO proceeds for capital expenditure, working capital, debt repayment, and general corporate purposes.
- Retail investors can bid for a minimum of 30 equity shares, with a maximum investment limit of Rs 2 lakh.
- The company’s financial performance has shown significant growth, with profits and revenue experiencing a strong CAGR.
Latest IPO News: Objectives of the Netweb Technologies IPO Issue
The primary objectives of Netweb Technologies’ IPO are to raise capital for surface mount technology (SMT) line development, fulfil long-term working capital requirements, repay debts, and support general corporate purposes. By achieving these objectives, the company aims to strengthen its market position and expand its current product offerings.
Latest IPO – Details of Netweb IPO Issue
The initial public offering (IPO) bidding is scheduled to commence on July 17, with the last day for applications being July 19.
The IPO has set a price band of Rs 475-500 per share. Netweb Technologies, a diverse computing solutions provider, aims to raise Rs 631 crore through the IPO. This includes a fresh issuance of shares worth Rs 206 crore by the company and an offer for sale of Rs 425 crore by the promoters.
Promoters and Offer Details
Promoter-selling shareholders include Sanjay Lodha, Navin Lodha, Vivek Lodha, Niraj Lodha, and Ashoka Bajaj Automobiles LLP. Additionally, eligible employees have a reservation of up to 20,000 equity shares at a discounted price of Rs 25 per share. Prior to the IPO, the company raised Rs 189.01 crore through an anchor book and Rs 51 crore through a private placement of 10.2 lakh shares.
Financial Performance: Impressive Growth and Potential
Netweb Technologies has exhibited robust financial performance, with significant growth in both profit and revenue. The profit has grown at a CAGR of 138.2 percent, reaching Rs 46.9 crore in FY23. The revenue has experienced a CAGR of 76.53 percent, amounting to Rs 445 crore in the same period.
How Can You Invest in the Latest IPO?
Investors should be aware of all the risks and concerns that may be associated with Netweb Technologies. These include foreign currency exposure, low-capacity utilisation, dependence on select customers and application industries, high working capital requirements, and potential impact on business operations due to customer loss.
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Netweb Technologies IPO presents an opportunity for investors to participate in the company’s growth and expansion plans. However, as a smart investor, it is a must that you carefully evaluate the prospectus and consider the company’s financial performance, objectives, and associated risks before making any IPO investment decisions.
Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing