Netweb Technologies raises Rs 189 crore from anchor investors days ahead of IPO

Nomura Funds, Goldman Sachs Funds, ICICI Prudential Mutual Fund (MF), HDFC MF, WhiteOak MF and Nippon MF, among others participated in the anchor round.

Out of the total allocation 37.8 lakh equity shares to the anchor investors, 22.27 lakh equity shares were allocated to 9 domestic mutual funds through a total of 19 schemes.

The IPO comprises a fresh issue of equity shares worth Rs 206 crore and an Offer For Sale (OFS) of 85 lakh equity shares by promoters.

Those selling shares in the OFS are Sanjay Lodha, Vivek Lodha, Navin Lodha, Niraj Lodha, and Ashoka Bajaj Automobiles LLP.

The issue, with a price band of Rs 475-500 per share, will open for public subscription during July 17-19. The company will fetch Rs 610 crore and Rs 631 crore at the lower and upper end of the price band. respectively.

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Proceeds of the fresh issue to the tune of Rs 32.77 crore will be used to fund capital expenditure, Rs 128.02 crore to support long-term working capital, and Rs 22.5 crore for debt payment, besides, general corporate purposes. Delhi NCR-based Netweb Technologies is a leading high-end computing solutions (HCS) providers. It is one of the few original equipment manufacturers (OEMs) in the country and is a recipient of the central government’s production-linked incentives scheme.

Half of the issue size has been reserved for qualified institutional investors, 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors.

Investors can bid for a minimum of 30 shares and in multiples thereof.

Last month, the company raised Rs 51 crore from institutional investors in a pre-IPO placement round.

For the 2023 fiscal, the company’s revenue from operations jumped 80 per cent to Rs 445 crore against Rs 247 crore a year ago and net profit for the period doubled to Rs 47 crore over Rs 22.45 crore in the year-ago period.

Equirus Capital and IIFL Securities are the book-running lead managers to the issue. Post-IPO, the equity shares of the company will be listed on the BSE and NSE.