Netweb Technologies IPO opens for applications on 17thth July 2023. We provide high-end computing solutions. The company’s revenue has tripled over the past four years. Earnings are improving year by year. In this article Netweb Technologies India IPO Details, financials, IPO objectives, ratings, reviews, conclusions.
Also read: List of stocks recommended by StockGPT for investment
Netweb Technologies India IPO Details
we used Netweb Technologies India RHP As source data for this review and analysis. Click here for details of the IPO.
| IPO start date | July 17, 2023 |
| IPO deadline | July 19, 2023 |
| IPO Listing Date | July 24, 2023 |
| Kind of problem | Book Built Issue IPO |
| face value | 2 rupees per share |
| IPO price range | Rs 470 to Rs 500 per share |
| lot size | 30 shares |
| Minimum order quantity | 30 shares |
| exhibition place | BSE and NSE |
| total issue size | Rs.63.1 billion |
| Latest issue | Rs.260 billion |
| OFS | Rs.425 million |
| Offer of QIB shares | 50% or more of the offer |
| Offer of NII/HNI shares | Not more than 15% of the offer |
| retail shares sold | No more than 35% of the offer |
| employee discount | 25 rupees per share |
About Netweb Technologies India Limited
The company is one of India’s leading High End Computing Solutions (HCS) providers with fully integrated design and manufacturing capabilities.
The HCS product includes:
(i) High Performance Computing (Supercomputing / HPC) Systems.
(ii) private cloud and hyperconverged infrastructure (HCI);
(iii) AI Systems and Enterprise Workstations.
(iv) High Performance Storage (HPS / Enterprise Storage System) solutions.
(v) Data Center Servers.and
(vi) Software and Services for HCS Products.
The company is one of the leading Indian owned and managed OEMs in the HCS sector offering Supercomputing Systems, Private Cloud & HCI, Data Center Servers, AI Systems & Enterprise Workstations, HPS solutions. In terms of HPC installations, the company is one of the most important OEMs in India.
What is the financial situation of Netweb Technologies India Limited?
Here is the financial situation of the company.
| Fiscal year end/end (amounts in billions) | ||||
| detail | 2020 | 21st year | 22nd year | 23rd year |
|---|---|---|---|---|
| Total assets | 50.6 | 110.2 | 148.6 | 266.0 |
| gross income | 157.2 | 144.3 | 247.9 | 445.7 |
| Profit after tax | 3.9 | 8.2 | 22.5 | 46.9 |
| Profit % | 2.49% | 5.70% | 9.05% | 10.53% |
What is the purpose of the IPO?
Netweb Tech’s IPO size is 631 million rupees. I have both the OFS and the latest issue.
1) Rs 425 Million Offering (OFS): Under OFS, these are sold by the selling shareholders and the proceeds are paid to the selling shareholders and the company gets nothing.
2) New Issuance of Rs 260 Million: Civil construction and interior development of buildings for Surface Mount Technology (SMT) lines and financing of capital expenditures required to purchase equipment/machinery for new SMT production lines (SMT lines), financing of long-term working capital needs, Repayment Full or partial advance payment of certain outstanding borrowings and general corporate purposes.
What about Netweb Technologies’ IPO price valuation?
IPO price ranges from Rs 470 to Rs 500 per share.
- Taking into account last year’s 2023 EPS was Rs 9.07, the P/E ratio is 55x.
- Taking into account the weighted EPS of Rs 6.28 over the last 3 years, the PER is 80x.
- Publicly traded peers like Dixon Technologies have a best-to-earnings earnings of 403 times, while Sirma SGS Technologies has a lowest earnings earnings of 60 times, with an industry average of 80 times earnings.
- Therefore, the 55x to 80x PE IPO price range is fully priced.
What is Netweb Technologies India IPO GMP now?
There are some messages on social media claiming that the gray market premium is between Rs 300 and 350, which is a premium of over 60%. However, some authentic sources indicate that today’s GMP is between Rs 300 and Rs 315 per strain.
When is Netweb Technologies’ IPO date?
| IPO start date | July 17, 2023 |
| IPO closes on | July 19, 2023 |
| Basis for allocation | July 24, 2023 |
| Initiate refund | July 25, 2023 |
| Credit of shares to Demat | July 26, 2023 |
| Listing date | July 29, 2023 |
| UPI Obligation Verification Deadline Time | July 19, 2023 |
Positive Factors for Investing in Netweb Technologies IPO
1) The company is one of India’s leading HCS owned and managed OEMs of Indian origin, with integrated design and manufacturing capabilities and longstanding relationships with a major and diverse customer base.
2) Strong revenue and margin growth. In the four years from FY2020 to FY23, the company saw a significant increase in total assets, increasing from Rs.50.6 billion to Rs.266 million. This growth was underpinned by a consistent increase in total revenue reaching Rs 445.7 million in FY23 and profit after tax more than doubled from Rs 3.9 billion in FY20 to Rs 469 billion in FY23 Increased. Also, the profit margin showed a favorable trend from 2.49% in FY20 to 10.53% in FY23.
3) The IPO price is reasonable compared to other companies in the same industry.
4) Employees of the company are entitled to a discount of Rs.25 per share.
Risks or Downsides in Netweb Technologies India IPO
1) We do not receive any proceeds from the sale. Selling shareholders receive net proceeds from the offering.
2) A company’s success depends on long-term relationships with its customers. In particular, it relies heavily on its top 10 customers. They typically do not enter into long-term contracts with their customers, exposing us to the risks arising from our inability to retain established customers as customers.
3) They derive most of their revenue from operating from a select few HCS products. A loss or decrease in demand for such products could adversely affect its business, earnings from its manufacturing operations and financial condition.
4) Its promoters have been involved in and settled certain regulatory proceedings initiated by SEBI. In addition, one of her members in her group of promoters is involved in regulatory proceedings initiated by SEBI.
5) Investors should read all internal and external risk factors from RHP before investing in this IPO.
Also read: Top 10 stocks recommended by Google AI Bard
Netweb Technologies IPO Review – Conclusion
Investors should consider all the positive and negative factors before investing in such an IPO.
The company is one of India’s leading native owned and managed OEMs for HCS with integrated design and manufacturing capabilities. Significant increase in revenue and profit over the last four years. The IPO price is also full price.
On the other hand, the company will not receive any income from OFS as it will be sold to the shareholder. We receive the majority of our revenue from several risky HCS products.
High-risk investors who understand all these risk factors can invest in this IPO with a medium- to long-term perspective.
Netweb Technologies India IPO FAQ
#1 – When is the Netweb Technologies IPO start date?
The IPO is expected to open on July 17th and close on the 19th.th July 2023
#2 – What is the current Netweb Technologies ipo gmp?
GMP is trading at Rs 300 to 315 per share.
#3 – Is Netweb Technologies India’s ipo price high?
Considering the upper price range of the stock price, the NetWeb IPO price range is around 55x to 80x PER, which is considered reasonable.
