The category reserved for retail investors was fully subscribed at 3 times, and the non-institutional investors’ portion was subscribed 3.61 times. However, qualified institutional buyers made just 3% of bids for the reserved part.
The company’s grey market premium (GMP) has been continuously rising over the past few days and is currently at Rs 360 in the unlisted market.
The IPO, which closes on July 19, comprises of a fresh equity issue of Rs 206 crore and an offer for sale (OFS) of 8.5 million equity shares.
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 QIB portion, 15% for 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.
Analysts say Netweb Technologies presents a unique business model and it is the only domestic company offering HCS offerings which makes it stand out due to lack of listed domestic and international players in the field.
“On the upper end of the price band, the issue is valued at a P/E of 55.1x based on FY23 earnings which we feel is fairly valued. We, therefore, recommend a “Subscribe” rating for the issue,” BP Wealth said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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