Netweb Technologies raises Rs 51 Cr in pre-IPO placement, trims fresh issue size

Netweb Technologies raises Rs 51 Cr in pre-IPO placement, trims fresh issue size

Netweb Technologies Secures Rs 51 Cr in Pre-IPO Placement, Adjusts Fresh Issue Size

Netweb Technologies, a leading provider of computing solutions, has successfully raised Rs 51 crore through a pre-IPO placement with institutional investors. This development has led to a reduction in the fresh issue size for its upcoming initial public offering (IPO).

In an official statement published in a prominent business newspaper, the company announced that it conducted a pre-IPO placement of 1.02 million equity shares at an issue price of Rs 500 per share, amounting to a total of Rs 51 crore. The shares were allocated to various entities, including LG Family Trust (20,000 equity shares), Anupama Kishor Patil (1 lakh shares), 360 ONE Special Opportunities Fund – Series 8 (5 lakh shares), and 360 ONE Monopolistic Market Intermediaries Fund (4 lakh shares).

Netweb Technologies clarified that the funds raised from this pre-IPO placement will be utilized for general corporate purposes. Consequently, the fresh issue size has been reduced from Rs 257 crore to Rs 206 crore.

Earlier in March 2023, Netweb had filed draft papers with the Securities and Exchange Board of India (SEBI) to raise funds through an IPO. The proposed IPO involved a fresh issuance of shares worth Rs 257 crore and an offer for sale of 8.5 million shares by its promoters, namely Sanjay Lodha, Navin Lodha, Vivek Lodha, Niraj Lodha, and Ashoka Bajaj Automobiles.

Taking into consideration the pre-IPO placement price as the issue price, the estimated total funds raised from the upcoming IPO, including the Rs 51 crore, could be around Rs 631 crore, potentially reaching Rs 682 crore.

Netweb Technologies, a renowned server manufacturer, has also received approval from the market regulator to proceed with its IPO plans.

According to the draft papers, the company intends to utilize the fresh issue proceeds for capital expenditure, construction of a building for the surface mount technology (SMT) line and interior development, and the purchase of equipment and machinery for a new SMT production line. Additionally, the funds will be allocated for long-term working capital requirements and debt repayment.

Netweb specializes in designing, manufacturing, and deploying highly customizable solutions (HCS) that include proprietary middleware solutions, end-user utilities, and precompiled application stacks. These solutions cater to prestigious clients across various industries, such as information technology, entertainment and media, banking, financial services and insurance (BFSI), national data centers, and government entities.

In the fiscal year ending in March 2022, Netweb Technologies achieved a profit after tax of Rs 22.45 crore, a significant increase from Rs 8.2 crore in the previous year. Moreover, the company’s revenue surged to Rs 247 crore from Rs 142.8 crore during the same period. In the six-month period ending in September 2023, the company’s profit reached Rs 14.73 crore, up from Rs 8.2 crore, while the revenue rose to Rs 143 crore from Rs 99.6 crore compared to the corresponding period last year.

Equirus Capital and IIFL Securities have been appointed as the merchant bankers for the IPO, with Link Intime India serving as the registrar for the issue.

About Netweb Technologies:

Netweb Technologies is a leading Indian-owned and controlled OEM in the HCS market, specializing in supplying supercomputing systems, private cloud and HCI, data center servers, AI systems and enterprise workstations, and HPS solutions. With complete integrated design and manufacturing capabilities, the company is poised to make a strong impact in the market.

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