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Domestic server manufacturer Netweb Technologies India said Thursday that it has set a price range of 475 to 500 rupees per share for its initial public offering (IPO) of 631 crore.
The initial sale of shares will be open to the public from July 17-19. According to the company, bids for anchor investors will open on July 14.
The initial public offering consists of a new issue of equity shares of Rs 206 crore and an offer for sale (OFS) of 85,000 equity shares by the promoters.
Those selling shares in OFS are Sanjay Lodha, Vivek Lodha, Navin Lodha, Niraj Lodha and Ashoka Bajaj Automobiles LLP.
The proceeds amounting to Rs.32.77 crore will be used to finance capital expenditures, Rs.128.02 crore to support long-term working capital, Rs.22.5 crore to pay down debts, along with general corporate purposes.
The company through IPO will fetch Rs 610 crore and Rs 631 crore at the lower and upper end of the price range, respectively.
Delhi NCR based Netweb Technologies is one of the leading Edge Computing Solution (HCS) providers in the country. It is one of the few original equipment manufacturers (OEMs) in the country and is a recipient of the Government of India’s production-linked incentive schemes.
Half of the issue size was reserved for qualified institutional investors, 35 percent for retail investors, and the remaining 15 percent for non-institutional investors.
Investors can bid on as few as 30 shares and their multiples. Last month, the company raised ₹51 crore from institutional investors in a pre-IPO round.
In financial year 2023, the company’s revenue from operations jumped by 80% to Rs. 445 crore from Rs. 247 crore a year earlier and net profit doubled to Rs. 47 crore from Rs. 22.45 crore.
Equirus Capital and IIFL Securities are the principals managing the issuance. After the IPO, the company’s shares will be listed on the Bahrain Stock Exchange and the New York Stock Exchange.
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