Netweb Technologies started its first day of trading with a hefty premium of 88 on July 27, which was largely in line with expectations given the high number of IPO registrations and the prevailing optimism in the stock market.
Shares opened at Rs 947 on the NSE against an issue price of Rs 500 a share, while the opening price on the BSE was at Rs 942.
Netweb Technologies’ public offering drew a strong response from investors, registering 90.36 times between July 17 and 19. Qualified institutional buyers showed their highest ever support for the IPO, purchasing 228.91 times the reserve shares. High net worth individuals bought 81.81 times the allotted quota and individual investors bought 19.15 times, while employee shares were registered 53.13 times. Stock market conditions were also positive, with the benchmark up more than 17% from its March low, helped by foreign capital inflows, encouraging global signals and positive corporate earnings.
The premium IT solutions provider raised Rs 631 crore through a public offering consisting of a new issue of Rs 206 crore and an offer of Rs 425 crore by promoters. The asking price range is 475 to 500 rupees per share. We have seen underwriting ratings of most brokers, based on fair valuations, strong financial performance, reputable client pool and long-term client relationships as well as healthy growth prospects. “We compare Netweb to EMS (Electronic Manufacturing Services) players who are primarily active in the manufacturing of electronic components and are also being driven by strong growth driven by recent storms. industry headwinds. We believe Netweb has a higher rate of growth and productivity than the EMS players and is also available at a cheaper valuation,” said Nirmal Bang, who suggested applying for the IPO. develops fine-tuned and customized computer systems to meet the high-end computing needs of clients, brokers.
As a result, Netweb was able to generate high margins of EBITDA (at 15.7% in FY 2023 vs 14%) and ROCE (52% Return on Equity in FY 2023). . Earnings and EBITDA grew at CAGRs of 139% and 121% respectively over the same period. NPAT margin increased steadily from 5.8% in 2021 to 10.5% in 2023.
Netweb Technologies has maintained a good average return on equity of around 46% in fiscal year 21-23. India’s IT market is expected to reach $225 billion in 2023 and reach $372.7 billion by 2029 at a CAGR of 8.8%. The PLI program and “China plus one” strategy will further boost the IT sector, which will provide growth opportunities for the company, Reliance Securities said.
Additionally, the broker said high-end computing solutions, such as HPC, HCI, AI & EW, data center servers, and more, are expected to see growth leading to growth. increasing adoption of technology in various end-use industries in addition to increasing public and private investment involved in these solutions.
With strong internal capabilities, sound financials, ability to penetrate new product lines, multiple industries with well-known end-users and customers, and strong growth prospects, Reliance Securities has proposed insurance issuer.
Netweb Technologies serves a number of well-known clients in various end-user industries such as Information Technology, Information Technology Based Services, Entertainment and Media, Banking, Financial Services and insurance (BFSI), national data centers and government organizations, including in the defense sector.
In addition, the company has embarked on the development of new product lines, namely network switches and 5G ORAN devices, by 2023. These are essential equipment for the data center industry, for the industry. IT and enterprise telecommunications to enable 5G services.
