- The Delhi based company intends to raise as much as ₹631 crore via the public offer.
- The IPO will open on July 17 and close on July 19.
- Around 50% of the offer is available to QIBs, 15% to NIIs and 35% to retail investors.
- The company intends to use net proceeds to fund capital and operational expenditures, loan payments and general corporate purposes.
As much as 15% is available for allocation to Non-Institutional Bidders, and 35% for retail investors.
The Delhi based company intends to raise as much as ₹631 crore via the public offer. The minimum bid lot has been fixed at 30 equity shares and in multiples of 30 equity shares thereafter.
The offer consists of a promoted offloading as well as fresh issue of shares. The company intends to use the net proceeds towards funding capital expenditure requirements, long-term working capital requirements, repayment or prepayment, in full or in part, of certain outstanding borrowings and general corporate purposes.
About the company
Netweb Technologies with both design and manufacturing capabilities in-house, has installed over 300 supercomputing systems and over 4,000 accelerator/GPU based AI systems and enterprise workstations as of May 2023.
The company is an original equipment manufacturer (OEM) which is eligible for the government’s production linked incentives (PLI) scheme.
Intel Americas, Advanced Micro Devices, Inc., Samsung India Electronics, Nvidia Corporation are some of the companies it collaborates with.
“Between March 31, 2022 and May 31, 2023 it has almost doubled its order book value from ₹48.56 crore to ₹90.21 crore,” the company said in a press release.
Risk factors
The company said in its DRHP that a significant proportion of the orders are from government related entities which award the contract through a process of tender.
“Tenders, typically, are awarded to the lower bidder once all other eligibility criteria are met. The Company’s performance could be adversely affected if it is not able to successfully bid for these contracts or required to lower its bid value,” it added.
It had low-capacity utilisation in the last three fiscal years. Its success is also dependent on the long-term relationship with its customers and is heavily reliant on its top 10 customers.
Moreover, it does not generally enter into long-term contracts with customers, which exposes the company to risks emanating from the inability to retain the established customers as the clients.
“Loss of all or a substantial portion of sales to any of the top 10 customers, for any reason could have a material adverse impact on its business, results of operations, financial condition and cash flows,” the company said.