Ahead of the listing, the company’s shares commanded a premium of Rs 390 in the unlisted market.
The IPO of Netweb, a leading high-end computing solutions (HCS) provider with fully integrated design and manufacturing capabilities, was subscribed 90.36 times at close.
The qualified institutional buyer portion was the most subscribed with a subscription of 228.91 times, followed by non-institutional investors with 81.81 times. The retail category was subscribed 19.15 times.
The IPO comprised fresh equity of Rs 206 crore and an offer for sale (OFS) of 8.5 million equity shares. Ahead of the offer, the company had raised Rs 189 crore from anchor investors.
On the upper end of the price band, the issue is valued at a P/E of 55.1x based on FY23 earnings.
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Netweb is one of the few OEMs in the country which is a recipient of production linked incentives schemes for IT Hardware and telecom and networking products manufacturing in India.The company develops homegrown computing and storage technologies, deploying supercomputing infrastructure to meet the rising computational demands of businesses, academia, and research organisations.
So far, three of their supercomputers have been listed 11 times in the world’s top 500 supercomputers.
Between March 2022 and May 2023, the company almost doubled its order book value from Rs 48.5 crore to Rs 90.2 crore.
For FY23, revenue from operations increased by 80% to Rs 445 crore, mainly due to an increase in sales, private cloud and HCI, and supercomputing systems. Net profit for the period more than doubled year-on-year to nearly Rs 47 crore.
Equirus Capital and IIFL Securities acted as book-running lead managers and Link Intime India was the registrar for the issue.