IPO listed on 27 Jul'23
Netweb Technologies India Ltd
Minimum Investment
₹ 15,000 / 30 shares
Grey market premium
₹ 370 (74% premium)
Issue price
₹ 500
Listing price
₹ 942
% since launch
Listing on
July 27, 2023
Our Verdict:
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- Netweb Technologies provides a distinct business approach as the only domestic provider of high-end computing solutions (HCS), a market segment with substantial entry barriers. The company has witnessed a ~3x rise in revenues and a ~6x surge in profitability, accompanied by steady improvement in the margin profile.
- Looking at the financial aspects, the IPO seems reasonably valued with a PE ratio of 59.7x, which appears justified considering the company’s strong track record and promising business outlook.
- Additionally, the grey market premium (GMP) for the issue indicates a premium listing, making it appealing for investors seeking listing gains. With these considerations in mind, we recommend subscribing to the Netweb Technologies IPO.
About the company
Founded in
22 Sep'99
Managing director
Sanjay Lodha
- Netweb Technologies, situated in Delhi, specialises in high-end computing solutions (HCS), boasting in-house design and production capacities. Its client base spans a variety of sectors such as IT, media and entertainment, BFSI, national data centers, and government organizations.
- It operates a manufacturing plant in Faridabad, Haryana, and manages 16 branches across the country.
- Offerings include high-performance computing systems (also known as supercomputing/HPC); private cloud services and hyper-converged infrastructure (HCI); AI systems and enterprise-level workstations; high-performance storage solutions (or HPS/enterprise storage systems); and data center servers, software, and related services.
STRENGTHS
- Strong track record: Netweb recorded 80% YoY increase in revenue in FY23, reaching Rs 445 crore from Rs 247 crore the previous year. Simultaneously, net profit soared from Rs 22.5 crore to Rs 47 crore.
- Improving profitability: The company has seen a significant surge in profitability, with EBITDA margins rising to 15.7% in FY23 from 10.1% in FY21. Additionally, PAT margins have climbed to 10.5% in FY23 from 5.8% in FY21.
- Solid order book: As of May 31, 2023, the order book stood at Rs 90.2 crore, promising a robust outlook for future revenues.
- Healthy financial ratios: Over time, the company's financial performance has remained consistently strong, demonstrated by a robust Return on Capital Employed (ROCE) of 64.42% in FY23 and a steadily decreasing net debt-equity ratio (DER), from 1.31 in FY21 to 0.3 in FY23.
RISK FACTORS
- Revenue concentration: A substantial part of Netweb's revenue, approximately 58% in FY23, is sourced from its top 10 customers. This high concentration suggests potential risks.
- Huge working capital requirements: The company's operations require a considerable amount of working capital. Any inability to secure the necessary working capital could negatively affect the company's operations.
Issue details
Issue type
Mainstream
Issue size
₹ 631 crore
Fresh Issue
₹ 206 crore
OFS
₹ 425 crore
Price range
₹ 475 - 500
Lot size
30 shares
Issue Objective
Net proceeds of the fresh issue will be utilised towards:
- Funding capex requirements of the company and purchase of equipment/machinery;
- Repayment or pre-payment of certain outstanding borrowings; and
- General corporate purposes
Dates
Bidding open
17 Jul'23
Bidding close
19 Jul'23
Allotment date
24 Jul'23
Refund date
25 Jul'23
Listing
27 Jul'23
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.