Netweb Technologies files DRHP for IPO, Seeks Rs257 crore

The offer for sale included up to 2.86 million shares by Sanjay Lodha, up to 1.43 million shares by Navin Lodha, up to 1.43 million shares by Vivek Lodha, up to 1.43 million shares by Niraj Lodha, and up to 1.35 million shares by Ashoka Bajaj Automobiles Private Ltd. 

According to the DRHP, the funds raised from the IPO will be used to fund Rs. 32.77 crore of capital expenditure, ₹128.02 crore of long-term working capital, ₹22.50 crore of repayment or prepayment of certain outstanding borrowings, and general corporate purposes. 

The book-running lead managers for the offer are Equirus Capital Private Limited and IIFL Securities Limited, and Link Intime India Private Limited will serve as the registrar. The equity shares are expected to be listed on both the BSE and NSE. 

The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Investors and not less than 35% of the Offer shall be available for allocation to Retail Individual Investors. 

The company, in consultation with the lead bankers to the issue, may consider a pre-IPO placement aggregating up to ₹51 crore. If such placement is completed, the fresh issue size will be reduced. 

Netweb Technologies, incorporated in 1999, is one of India’s leading Indian origin, owned and controlled OEM in the space of HCS providing Supercomputing systems, private cloud and HCI, data centre servers, AI systems and enterprise workstations, and HPS solutions, according to a F&S Report mentioned in the DRHP.  

Netweb has both design and manufacturing capabilities inhouse and deployed over 300 supercomputing systems and over 4000 accelerator / GPU based AI systems and enterprise workstations as of February 2023. Intel, Samsung, AMD, NVIDIA are some of the companies it collaborates with to innovate on product offerings. It is a high-end computing solutions (HCS) provider based in India catering to many Indian and multinational Customers based in India and grow its geographical footprint in Europe, Middle East and Africa (EMEA). 

Between March 31, 2022 and February 28, 2023, it has more than doubled its order book value from ₹48.56 crore to ₹98.12 crore. 

For the fiscal year 2022, the company’s revenue from operations increased 73.0% to ₹247.03 crore against ₹142.79 crore a year ago and Net profit for the period increased 172.82% to ₹22.45 crore as against ₹8.23 crore last year. 

For the six months ended September 30, 2022, revenue from operations stood at ₹143.02 crore and net profit stood at ₹14.73 crore.