Netweb Technologies IPO: Issue subscribed 2.33 times on day 1; check details

Netweb Technologies IPO Subscription Status: The initial public offering (IPO) of Netweb Technologies Ltd was subscribed 2.33 times on Day 1. The public issue that opened for subscription on Monday, July 17, and will end on Wednesday, July 19.

Employees and retail investors enthusiastically responded to the issue on the first day of subscription, followed by non-institutional investors (NIIS), and qualified institutional buyers (QIBs). 

Retail investors portion was subscribed 3 times, employee portion was subscribed 6.60 times, NIIs portion was subscribed 3.61 times, and QIBs portion was subscribed 3%.

The company has received bids for 2,06,05,890 shares against 88,58,630 shares on offer, according to data from the BSE.

The retail investors' portion received bids for 1,34,67,090 shares against 44,86,263 shares on offer for this segment.

The employees' portions received bids for 1,32,000 shares against 20,000 on offer for this segment.

The non-institutional investors' portion received bids for 69,40,080 shares against 19,22,685 on offer for this segment.

The QIBs' portion received bids for 66,720 shares against 24,29,682 on offer for this segment.

The company has fixed the price band at ₹475 to ₹500 per equity share for the proposed initial public offer. Qualified institutional buyers are entitled to 50% of the offer size, high net worth individuals to 15% of the offer size, and retail investors to 35% of the offer size. 

Netweb Technologies India collected ₹189.01 crore from anchor investors on Friday, July 14. 

The company finalised the allocation of 37.80 lakh equity shares to 25 anchor investors at the upper price band of ₹500 per share, according to the statement it filed with the exchanges.

Among the investors who made investments in the company through the anchor book were Nomura Funds, Goldman Sachs Funds, Eastspring Investments India Fund, Motilal Oswal MF, Franklin Templeton, Nippon Life India Trusteee, HDFC Mutual Fund, ICICI Prudential, Aditya Birla Sun Life Trustee, Axis Mutual Fund, and Whiteoak Capital.

The company intends to raise ₹631 crore through an offering that consists of a fresh issuance of shares for ₹206 crore and a promoters' offer to sell shares for ₹425 each.

The company plans to use the net proceeds from the offering to pay for the following items, such as the civil construction costs for the building housing the surface mount technology (SMT) line, interior development, and the purchase of machinery and equipment for the new SMT production line (SMT Line).

Funding of long-term working capital needs, prepayment or payback, in full or in part, of certain outstanding borrowings, and general corporate objectives.

The book running lead managers of the public offering are Equirus Capital Private Ltd, and IIFL Securites Ltd, whereas the registrar to the issue is Link Intime India Private Ltd.