Netweb Technologies shares make a stellar market debut; here is what investors may do

Netweb Technologies shares made a strong debut in the secondary market on Thursday, July 27. The stock of Netweb Tech — a provider of high-end computing solutions (HCS) — began its journey in the listed space at Rs 942.5 apiece on BSE, translating to a premium of 88.5 per cent over the upper end of the IPO price band. On NSE, Netweb Technologies opened at Rs 947 apiece, a premium of 89.4 per cent. 

The listing was in line with Zee Business Managing Editor Anil Singhvi's expectations. The stock finished the day at Rs 910.5 apiece on BSE and Rs 912 apiece on NSE.  

What to do with Netweb Technologies shares now?  

EDITOR'S TAKE | Hold with stop loss at Rs 800

Singhvi, who had recommended applying for the Netweb IPO for "big listing gains", suggests buying the stock from a long-term perspective. He expected the stock to list in the range of Rs 900-950, a premium of 80-90 per cent over the upper end of the issue price. He is of the view that investors can hold the stock with a stop loss at Rs 800. 

He has highlighted the following key points about the company: 

Positive

• Experienced promoters with a strong background 
• Unique business model
• Strong growth outlook
• Reasonable valuations

Negative

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

Here are some of the key things to know about the Netweb Technologies IPO:

Netweb Technologies' initial public offer (IPO), to raise up to Rs 631 crore, concluded last week with an overall subscription of 90.4 times. The Netweb IPO comprised fresh issuance of Rs 206 crore and an offer for sale (OFS) worth Rs 425 crore.

Subscription

The Netweb IPO received bids for more than 80 crore shares as against the 88.6 lakh shares on offer, according to provisional exchange data. The public offer saw strong participation across all categories of investors. 

Under the IPO, which was open for subscription from July 17 to July 19, Netweb shares were available for bidding on a price band of Rs 475-500 in multiples of 30, translating to Rs 14,250-15,000 per lot. Read more on Netweb Technologies IPO

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