Netweb Technologies shares made a stellar debut on the bourses at a premium on Thursday. On the NSE, the stock price was listed at Rs 947 per share, 89.4 per cent higher than the issue price of Rs 500. The shares were listed at Rs 942.50 per share on the BSE.
Netweb Technologies IPO opened for subscription on July 17 and closed on 19 July. The company had fixed the price band at Rs 475 to Rs 500 per share on the proposed initial public offering (IPO).
"The strong listing was in line with expectations, as the company has a strong track record of growth and its financial performance has been improving in recent years. Netweb Technologies is well-positioned to benefit from the growth of the high-end computing market in India, as it has a strong focus on the niche business segment of high-end computing solutions," said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd.
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"After listing at such a level, we will suggest to hold as of now with a Stoploss at around 850. However, aggressive investors can still choose to buy during any subsequent dip," she added.
According to market analysts, the stock was commanding a premium of Rs 394 in the grey market.
The Netweb Technologies IPO worth Rs 631 crore was subscribed 90.36 times at close. The portion booked for qualified institutional buyer (QIBs) was subscribed the most at 228.91 times, followed by non-institutional investors with 81.81 times. The retail investors portion was subscribed 19.15 times.
The public issue comprised fresh equity of Rs 206 crore and an offer for sale (OFS) of 8.5 million equity shares. The company raised Rs 189 crore from anchor investors ahead of the IPO.
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IIFL Securities and Equirus Capital are the book-running lead managers to the issue. Link Intime India is the registrar.
During fiscal 2023, Netweb Technologies reported 80 per cent growth in revenue from operations at Rs 445 crore, on the back of an increase in the sales of private cloud and HCI, supercomputing systems. Net profit for the year increased over twofold to Rs 47 crore.
