Netweb Technologies IPO: Issue subscribed 2.33 times on day 1

The Netweb Technologies Ltd IPO experienced robust demand during its initial day of subscription, resulting in an oversubscription rate of 2.33 times. The subscription period began on Monday, July 17, and will conclude on Wednesday, July 19.

The IPO received enthusiastic participation from both employees and retail investors, as well as significant interest from non-institutional investors (NIIs) and qualified institutional buyers (QIBs).

The retail investors\’ portion was oversubscribed 3 times, while the employee portion was oversubscribed by an impressive 6.60 times. The NIIs portion also witnessed strong demand, with an oversubscription rate of 3.61 times, and the QIBs portion experienced an oversubscription rate of 3%.

Specifically, the retail investors\’ portion received bids for 1,34,67,090 shares against the 44,86,263 shares available. The employees\’ portion garnered bids for 1,32,000 shares, exceeding the 20,000 shares on offer. In the non-institutional investors\’ portion, bids were received for 69,40,080 shares against the 19,22,685 shares available. The QIBs\’ portion received bids for 66,720 shares against the 24,29,682 shares offered.

The IPO is priced in the range of ₹475 to ₹500 per equity share. Qualified institutional buyers are entitled to 50% of the offer size, while high net worth individuals can subscribe to 15% of the offer size, and retail investors have access to 35% of the offer size.

Netweb Technologies India successfully raised ₹189.01 crore from anchor investors on Friday, July 14. The company allocated 37.80 lakh equity shares to 25 anchor investors at the upper price band of ₹500 per share.

Prominent investors participating in the anchor book included entities such as Nomura Funds, Goldman Sachs Funds, Eastspring Investments India Fund, Motilal Oswal MF, Franklin Templeton, Nippon Life India Trusteee, HDFC Mutual Fund.
With an aim to raise ₹631 crore through the IPO, the company plans to achieve this by issuing fresh shares worth ₹206 crore and offering shares for sale by the promoters at ₹425 each.

The net proceeds generated from the offering will be allocated to various purposes, including covering civil construction costs for the surface mount technology (SMT) line building, facilitating interior development, procuring machinery and equipment for the new SMT production line, funding long-term working capital requirements, repaying certain outstanding borrowings, and supporting general corporate objectives.

Equirus Capital Private Ltd and IIFL Securities Ltd are serving as the book running lead managers for the public offering, while Link Intime India Private Ltd has been appointed as the registrar to the issue.

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