Netweb Technologies IPO Lists At 89% Premium On Market
Netweb Technologies, a high-end computing solutions provider, had a successful listing on the stock exchanges, with its shares trading at a premium of over 89%.
The stock is listed at ₹947 on the NSE and ₹942.5 on the BSE, significantly higher than the issue price of ₹500. Retail investors who received an allotment made a profit of ₹447 per share, resulting in their investment nearly doubling in just ten days.
The retail category of the IPO was subscribed 19.15 times, while the qualified institutional buyer portion was subscribed 228.91 times. The IPO received an overall subscription of 90.36 times.
Netweb Technologies is one of the few original equipment manufacturers in India and has been recognized under the central government’s production-linked incentives scheme.
The company’s strong listing was expected due to its track record of growth and improving financial performance.
Analysts suggest holding the stock with a stop loss at around ₹850, while aggressive investors can consider buying during any subsequent dip.
The IPO raised ₹631 crore, with a fresh issuance of shares accounting for ₹206 crore and a promoters’ offer to sell shares for ₹425 each.
The net proceeds from the offering will be used for various purposes, including civil construction costs, interior development, and the purchase of machinery and equipment for a new production line.
The funds will also be used for long-term working capital needs, repayment of outstanding borrowings, and general corporate objectives.
Anchor investors, including Nomura Funds, Goldman Sachs Funds, and HDFC Mutual Fund, made investments in the company prior to the IPO.
The book running lead managers for the IPO were Equirus Capital Pvt Ltd and IIFL Securities Ltd, while the registrar to the issue was Link Intime India Pvt Ltd.
The successful listing of Netweb Technologies and the significant premium at which its shares traded have generated substantial profits for retail investors and attracted strong demand from institutional buyers.
The Netweb Technologies company is a high-end computing solutions provider. It has positioned itself as an original equipment manufacturer. The company contributed to its positive market reception.