netweb technologies listing: Will Netweb Technologies deliver strong listing gains on Thursday? Here’s what GMP signals

The shares of Netweb Technologies will be listed on the exchanges on Thursday and grey market trends indicate strong returns to investors on the listing day. The company’s shares are commanding a premium of around Rs 390, and considering the upper price band of Rs 500, the stock is likely to debut at a solid 78% premium.

However, it is important to note that grey market premiums are just an indicator as to how the company’s shares are stacked up in the unlisted market and are subject to change rapidly. The IPO of Netweb, a leading high-end computing solutions (HCS) provider with fully integrated design and manufacturing capabilities, was subscribed 90.36 times at close.

The qualified institutional buyer portion was the most subscribed with a subscription of 228.91 times, followed by non-institutional investors with 81.81 times. Retail category was subscribed 19.15 times.

The IPO comprised fresh equity of Rs 206 crore and an offer for sale (OFS) of 8.5 million equity shares. Ahead of the offer, the company has raised Rs 189 crore from anchor investors.

Netweb is one of the few OEMs in the country which is a recipient of production linked incentives schemes for IT hardware and telecom and networking products manufacturing in India.

The company develops homegrown computing and storage technologies, deploying supercomputing infrastructure to meet the rising computational demands of businesses, academia, and research organisations.

Between March 2022 and May 2023, the company almost doubled its order book value from Rs 48.5 crore to Rs 90.2 crore. For FY23, revenue from operations increased 80% to Rs 445 crore, mainly due to an increase in the sales, private cloud and HCI, supercomputing systems. Net profit for the period more than doubled year-on-year to nearly Rs 47 crore.Equirus Capital and IIFL Securities acted as book running lead managers and Link Intime India was the registrar for the issue.

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