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| PC: Freepik |
Netweb Technologies, a leading high-end computing solutions provider, made a remarkable debut in the stock market as its initial public offering (IPO) garnered significant interest from investors. On the first day of bidding, the IPO was subscribed 2.33 times, reflecting the strong confidence of market participants in the company's prospects.
According to data from the Bombay Stock Exchange (BSE), Netweb Technologies' IPO received an overwhelming response, with a total of 2,06,05,890 bids recorded against the issue size of 88,58,630 shares. The IPO is being offered in the price range of Rs 475 to Rs 500 per equity share, with a lot size of 30 shares and multiples thereafter.
Notably, the employee portion of the IPO witnessed exceptional demand and was oversubscribed by 6.60 times, showcasing the enthusiasm among the company's workforce. Non-institutional investors (NIIs) and retail individual investors also displayed strong interest, with their respective portions subscribed 3.61 times and 3 times of the total bids. However, the category for qualified institutional buyers (QIBs) saw a modest subscription of only 3%.
The IPO, which aims to raise Rs 631 crore, has allocated 50% of the offer for QIBs, 15% for NIIs, and the remaining 35% for retail investors. The positive response from investors can be attributed to Netweb Technologies' robust business fundamentals, impressive balance sheet, and reasonable valuations when compared to its industry peers.
Leading brokerages have recommended subscribing to the IPO, citing the company's strong growth prospects, diverse customer base, and a portfolio of cutting-edge technological solutions. Analysts at Reliance Securities recommend 'Subscribing' to the issue."
The grey market, a platform for unofficial trading, has also shown considerable enthusiasm for Netweb Tech shares. The latest grey market price (GMP) indicates that the shares are trading at a 75% premium against the IPO's issue price of Rs 500 (higher end).
Netweb Technologies had a successful anchor investor round, raising Rs 189 crore by allocating 37.8 lakh equity shares to prominent investors, including Nomura Funds, Goldman Sachs Funds, ICICI Prudential Mutual Fund, HDFC MF, WhiteOak MF, and Nippon MF.
Equirus Capital and IIFL Securities are the book-running lead managers for the IPO, while Link Intime India has been appointed as the registrar. The shares of Netweb Technologies will be listed on both the BSE and NSE on July 27, providing investors with an opportunity to capitalize on the company's growth potential.
As the IPO subscription continues until July 19, market experts anticipate sustained investor interest and a positive response, reinforcing Netweb Technologies' position as an emerging player in the high-end computing solutions sector.
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