The category reserved for retail investors was subscribed 8.77 times, and that for non-institutional investors (NIIs) was subscribed 18.09 times. However, QIB demand picked up pace in the second half of the day with 2.66 times subscription.
The company’s shares are commanding a premium of Rs 370 in the unlisted market, indicating healthy listing gains for investors.
The IPO comprises fresh equity of Rs 206 crore and an offer for sale (OFS) of 8.5 million equity shares. Ahead of the offer, the company has raised Rs 189 crore from anchor investors.
It had allocated about 37.80 lakh shares at Rs 500 per share, which includes a share premium of Rs 498 per share in the anchor round, which saw participation from marquee investors including Nomura Funds, Goldman Sachs Funds, ICICI Prudential MF and Life Insurance, HDFC MF, WhiteOak MF among others.
The company is offering its shares in the price range of Rs 475-500, and at the upper end, the valuation is at a P/E of 55-59x. The IPO will fetch Rs 631 crore at the upper end of the price band.
About 50% of the net offer is reserved for the QIB portion, 15% for the NII category, and 35% for retail investors. Investors can bid for 30 shares in one lot and in multiples thereafter.Proceeds from the issue will be used for funding its capital expenditure, long-term working capital, and repayment, in full or in part, of debt.
Most analysts advise investors to subscribe to the issue considering the growth opportunities, strong fundamentals, and robust product portfolio.
Netweb Technologies develops homegrown computing and storage technologies, deploying supercomputing infrastructure to meet the rising computational demands of businesses, academia, and research organisations.
So far, 3 of their supercomputers have been listed 11 times in the world’s top 500 supercomputers.
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