Netweb Technologies IPO hits Street; should you subscribe?

High-end computing solutions (HCS) provider Netweb Technologies launched an initial public offer (IPO), worth up to Rs 631 crore, on Monday, July 17. The IPO, comprising fresh issuance of Rs 206 crore and an offer for sale (OFS) worth Rs 425 crore, will be open for three trading days, till July 19. 

Here's all you need to know about the Netweb Technologies IPO: 

Timings/important dates

The bidding process will be open from 10 am to 5 pm on July 17, July 18 and July 19. The Netweb Tech stock is likely to debut on stock exchanges BSE and NSE July 27.

The basis of the allotment of shares is likely to be finalised on July 24 and the credit of shares likely to take place on July 26.  

Issue price/lot size

Under the subscription window, potential investors can bid for Netweb Tech shares in a price range of Rs 475-500 in multiples of 30, translating to Rs 14,250-15,000 per lot. 

EDITOR'S TAKE | Should you subscribe?

Zee Business Managing Editor Anil Singhvi recommends applying for the Netweb IPO for "big listing gains" and from a long-term perspective. He has identified the following key points about the company: 

Positive

• Promoters' background strong 
• Unique business model
• Strong growth outlook
• Reasonable valuations

Negative

• Low order book
• Low capacity utilisation
• Low margin business

Anchor investors

Ahead of the launch of the IPO, the server maker said it had collected Rs 189 crore from anchor investors, by allocating 37.8 lakh equity shares to 25 funds, including Nomura Funds, Goldman Sachs Funds, ICICI Prudential Mutual Fund (MF), HDFC MF, WhiteOak MF and Nippon MF, at Rs 500 apiece. 

Fund utilisation

The company aims to utilise the proceeds from the issue towards capex for civil construction, purchase of machinery, long-term working capital needs, repayment or pre-payment of debts and for general corporate purposes, according to its red herring prospectus. Read more on Netweb Tech IPO

(With inputs from agencies)

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