Netweb Technologies IPO: Computing Solutions Provider Netweb Technologies India’s Initial Public Offering (IPO) will open for public subscription on July 17th.
The IPO will close on July 19 after being available for three days.
The company has set a price range of ₹475-500 per share for the public issue. At the upper band price, the company aims to raise around ₹631 crores through the IPO.
On July 27, Netweb Technologies shares will list on the BSE and NSE marketplaces following the public offering.
Retail investors are eligible to apply for up to 13 lots, each consisting of 30 shares, in the Netweb Technologies IPO.
Netweb Technologies India Limited specializes in high-end computing solutions (HCS) and provides services in various sectors including IT, IT-enabled services, entertainment, media, BFSI, national data centers, and government organizations.
The business has 16 locations spread out over India and a production facility in Faridabad, Haryana.
Its 3 supercomputers have been listed 11 times among the top 500 supercomputers in the world by the NTL.
Netweb Technologies has raised ₹51 crores through a pre-IPO placement at a price of ₹500 per share from key institutional investors, including the LG Family Trust and Anupama Kishor Patil.
From 247 crores the year before to 445 crores in FY23, the company’s yearly revenue climbed by 80%.
Its net profit increased from 22.5 crores to 47 crores during the same time frame. From 10.1% in the fiscal year 2011 to 15.7% in the fiscal year 2013, the EBITDA margin grew.
Netweb Technologies IPO – Should You Subscribe?
The majority of analysts have awarded the Netweb Technologies IPO a “Subscribe” rating, taking into account its commercial viability, revenue growth, and fair valuation.
Geojit Financial Services:
Geojit Financial Services stated that at the upper price band of ₹500, Netweb Technologies is available at a P/E ratio of 59.7x (FY23), which is reasonably priced compared to its peers.
“Thanks to efficient management, ongoing development, an expanded product portfolio, a global footprint, and the government’s Digital India strategy, Netweb Technologies is in a great position to benefit from the growth of the Indian IT industry. As a result, we give the issue a medium- to short-term “Subscribe” rating, according to Geojit Financial Services.
Choice Broking anticipates that the top line of the business will increase at a CAGR of 37% to reach 835.4 crores in FY25. It also predicts that the EBITDA and PAT margins will increase by 132 bps and 162 bps, respectively, in FY25E, resulting in 17.1% and 12.2% margins.
There is no comparable peer with a similar business model and product offering as Netweb Technologies in the space mentioned. At the upper price band, it is demanding a P/E multiple of 59.7x (for its FY2023 earnings), which appears reasonable given the company’s business capabilities and revenue growth. However, considering the medium-term business potential and growth in earnings, we believe that the valuation demanded is justified,” Choice Broking said.
Therefore, they have provided a “Subscribe” rating for the issue.
Marwadi Shares and Finance:
The brokerage firm has given the Netweb Technologies IPO a “Subscribe” rating because the business is one of India’s top HCS providers and is in a rapidly evolving and technologically sophisticated sector.
“It is in a good position with its solid financial performance and impressive track record of steady expansion. Moreover, it is available at a reasonable valuation compared to its peers,” Marwadi Shares and Finance said.
Based on the FY23 EPS of ₹8.37 after the issue, the company is set to be listed at a P/E ratio of 59.72x with a market cap of ₹28,032 million.According to Marwadi Shares and Finance, its comparable rivals are Syrma SGS Technology, Kaynes Technology India Ltd., and Dixon Technologies Ltd., which are trading at P/E ratios of 72x, 106x, and 101x, respectively.