Netweb Technologies files draft IPO papers with SEBI

Netweb Technologies India has filed its draft red herring prospectus (DRHP) with the market regulator SEBI to raise funds through an Initial Public Offering (IPO). The Delhi-NCR-based server maker is one of the country’s leading high-end computing solutions (HCS) providers.

According to the DRHP, the issue will consist of fresh equity shares worth up to Rs 257 crore and offer-for-sale (OFS) of up to 85 lakh equity shares from its promoters and existing shareholders. Sanjay Lodha will offload 28.6 lakh equity shares, while Navin Lodha, Neeraj Lodha and Vivek Lodha will sell 14.3 lakh equity shares each. Ashoka Bajaj Automobiles Private Limited is eyeing to sell 13.5 lakh equity shares.

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

The net proceeds from the issue will be utilized for funding its capital expenditure, funding its long-term working capital, repayment or pre-payment, of certain of its outstanding borrowings and general corporate purposes, the company said in DRHP.

Incorporated in 1999, Netweb Technologies is an OEM in the space of HCS providing supercomputing systems, private cloud and HCI, data center servers, AI systems and enterprise workstations, and HPS solutions, according to an F&S Report mentioned in the DRHP. Intel, Samsung, AMD, and NVIDIA are some of the companies it collaborates with to innovate on product offerings.

It caters to marquee Customers across various end-user industries such as information technology, information technology-enabled services, entertainment and media, banking, financial services and insurance (BFSI), national data centers and government entities including in the defence sector, education and research development institutions.

Between March 31, 2022, and February 28, 2023, it more than doubled its order book value from Rs 48.56 crore to Rs 98.12 crore. For the fiscal year 2022, Netweb Technologies' revenue from operations increased 73 per cent to Rs 247.03 crore against Rs 142.79 crore a year ago. Net profit for the period increased 172.82 per cent to Rs 22.45 crore as against Rs 8.23 crore last year.

The company will allocate 50 per cent of equity shares to qualified institutional bidders (QIBs), whereas 15 per cent of shares are likely to be reserved for non-institutional bidders (NIIs). The remaining 35 per cent of equity shares will be allocated to retail individual bidders.

Equirus Capital and IIFL Securities are the book-running lead managers and Link Intime India Private is the registrar for the offer. The equity shares are proposed to be listed on both BSE and NSE.

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