The initial public offering (IPO) of Netweb Technologies, a leading technology company, commenced on its first day with great enthusiasm. Investors eagerly subscribed to the IPO, resulting in it being oversubscribed by 2.33 times. This article will provide you with a comprehensive overview of the Netweb Tech. IPO, including the subscription details, the latest grey market premium (GMP), and other relevant information.
Netweb Tech. is a renowned technology company that specializes in providing cutting-edge solutions to businesses worldwide. With a focus on digital transformation and innovation, the company has established itself as a leader in the technology sector. Netweb Technologies offers a wide range of services, including software development, cloud computing, artificial intelligence, and cybersecurity.
Investors responded enthusiastically to Netweb Technologies India’s initial public offering (IPO) on the first day of bidding (Day 1), with workers, non-institutional investors (NIIs), and retail purchasers showing particularly high interest. According to BSE statistics, 2,06,05,890 bids were submitted for Netweb Tech’s IPO on Monday, which had an issue size of 88,58,630 shares. The inaugural share sale for Rs 631 crore is being sold at a price between Rs 475 and 500 per share with a lot size of 30 equity shares. The stake auction, which began today and will last for three days, will finish on July 19th.
The IPO received a 2.33 times subscription on Day 1. The section set out for staff received the most push and was 6.60 times subscribed. In contrast to the allocation for retail individual investors, who received three times as many bids, the quota for NIIs was booked 3.61 times. On the other hand, just 3% of the available shares were subscribed in the category for qualified institutional buyers (QIBs).
QIBs will receive 50% of the company’s offer, while NIIs will receive 15%. Retail bidders are eligible to purchase the remaining 35% of the offer.
The majority of brokerages had good opinions on the stock, praising its excellent financial position, solid balance sheet, and competitively inexpensive prices.
The statement from Reliance Securities reads, “In view of strong in-house capabilities, healthy financials, foray into new product-lines, multiple end user industries and marquee customers, and strong growth prospects, we recommend ‘Subscribing’ to the issue.”
A ‘Subscribe’ tag was also added by Nirmal Bang. “Netweb has the ability to provide strong ROCE and EBITDA margins. There are no HCS industry equivalents in the listed space that are directly similar. As a result, we contrast Netweb with EMS companies, which specialise in producing electrical components and are likewise seeing rapid development thanks to positive industry tailwinds, it said.
“On a valuation basis, Netweb Tech’s higher price band demands a P/E multiple of 59.7x (on its FY23 earnings), which appears to be on the higher side due to the company’s niche product segment of private cloud services and its advantageous position as a first mover in the listed space, which commands a premium,” said Yash Kukreja, Research Analyst at Mehta Equities. We think there would be significant interest in such companies’ IPO offer. We advise investors to “Subscribe for listing gains only” as a result.
“The company is well-positioned to capitalise on the growth of the Indian IT industry,” added Geojit. As a result, we rate the problem as “Subscribe” for the short- to medium-term.
In the black market, shares of Netweb Technologies were last observed selling at a premium of 75% above their issue price of Rs. 500 (upper end).
Prior to its IPO, the business issued 37.8 lakh equity shares at a price of Rs 500 each, raising Rs 189 crore from anchor investors. Participants in the anchor round were Nomura Funds, Goldman Sachs Funds, ICICI Prudential Mutual Fund (MF), HDFC MF, WhiteOak MF, and Nippon MF.
The issue will have book-running lead managers in Equirus Capital and IIFL Securities, while Link Intime India will serve as the registrar. Both the BSE and NSE would list Netweb Tech’s shares.
FAQ 1: How can I participate in the Netweb Technologies IPO?
To participate in the Netweb Technologies IPO, you need to have a demat account with a registered stockbroker. You can apply for the IPO through your broker’s online platform or by submitting a physical application form.
FAQ 2: What is the lock-in period for the IPO shares?
The lock-in period for IPO shares is typically 30 days for retail investors. During this period, you cannot sell or transfer the allotted shares. After the lock-in period expires, you are free to trade the shares on the stock exchange.
FAQ 3: How does oversubscription affect the IPO allotment?
Oversubscription can affect the IPO allotment process. When an IPO is oversubscribed, the shares are allocated proportionately among the applicants. In case of oversubscription, you may receive a partial allotment based on the number of shares available.
FAQ 4: Can I apply for the IPO online?
Yes, you can apply for the Netweb Tech. IPO online through your stockbroker’s online platform. Online applications offer convenience and a streamlined process for IPO participation.
FAQ 5: What are the post-IPO listing prospects for Netweb Technologies?
Post-IPO listing prospects for Netweb Technologies will depend on various factors, including market conditions and the company’s performance. It is advisable to monitor the company’s financials and market trends to assess its post-listing potential.
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