Netweb Technologies IPO Subscription Reaches 5 Times on Day 2, Strong Interest from NII and Retail Investors
Netweb Technologies IPO
Netweb Technologies IPO: A Strong Response from Investors
The IPO of Netweb Technologies India has been garnering significant attention from investors. As of July 18, on the second day of subscription, the issue has already been subscribed 5.04 times, demonstrating the market’s keen interest.
On the first day, the subscription rate stood at 2.33 times. The company aims to raise Rs 631 crore through this Initial Public Offering, and the bidding process will continue until July 19. With a price band of Rs 475-500 per share, Netweb Technologies is set to make a mark in the market.
How is the response in different categories?
The subscription data reveals varying levels of interest from different investor categories:
- Qualified Institutional Buyers (QIB) – 7 per cent
- Non-Institutional Investors (NII) – 8.87 times
- Retail Investors – 6.05 times
- Total Subscription – 5.04 times
The substantial response from the Non-Institutional and Retail Investors indicates widespread enthusiasm for Netweb Technologies’ IPO.
IPO related details
Under the IPO, the company has issued fresh equity shares worth Rs 206 crore, and the promoters are offering shares worth Rs 425 crore under the Offer for Sale (OFS) category.
Even before the IPO’s opening, Netweb raised Rs 189.01 crore from anchor investors on July 14.
Additionally, the company secured Rs 51 crore through a private placement (pre-IPO placement) of 10.2 lakh shares at Rs 500 per share, reducing the size of the fresh issue from Rs 257 crore to Rs 206 crore.
Condition of the gray market
The gray market is witnessing tremendous demand for Netweb Technologies’ IPO. Presently, the issue is trading at a premium of Rs 370 in the unlisted market.
If the shares are listed at Rs 870, compared to the upper price band of Rs 500, investors could enjoy a remarkable profit of 74 per cent.
While there has been a slight decline in the Gray Market Premium (GMP) compared to earlier, the overall market sentiment remains positive.
About Netweb Technologies India
Netweb Technologies India is a prominent Original Equipment Manufacturer (OEM) specializing in High-End Computing Solutions (HCS).
Based in Faridabad, Haryana, the company’s manufacturing facility produces supercomputing systems, private cloud and Hyper-Converged Infrastructure (HCI), data center servers, Artificial Intelligence (AI) systems, enterprise workstations, and High-Performance Servers (HPS).
The company caters to a diverse clientele, including both Indian and multinational customers. A recent expansion into developing Network Switch and 5G ORAN Appliances showcases Netweb’s commitment to innovation and growth.
Conclusion
The strong investor response to Netweb Technologies’ IPO reflects the market’s confidence in the company’s potential and growth prospects.
With robust subscriptions from various categories of investors, Netweb is well-positioned to raise the targeted capital for expansion and new product development.
The gray market’s positive response indicates that investors are optimistic about the company’s future performance.
FAQs
How can I invest in Netweb Technologies’ IPO? To invest in the IPO, you can approach your preferred stockbroker or utilize online platforms for seamless bidding.
What is the issue price range for Netweb Technologies’ IPO? The issue price band for Netweb’s IPO is set between Rs 475 to Rs 500 per share.
Can foreign investors participate in the IPO? Yes, foreign investors can participate in Netweb Technologies’ IPO as per regulatory guidelines.
When will the shares be listed on the stock exchange? The listing date will be announced by the stock exchange after the IPO process is complete.
What are the growth prospects for Netweb Technologies? Netweb Technologies’ growth prospects appear promising, given their expansion into new product lines and strong demand for their offerings in the market.
