Netweb Technologies shares will debut in the secondary market at 10 am on Thursday, July 27. High-end computing solutions (HCS) provider Netweb Technologies’ initial public offer (IPO), to raise up to Rs 631 crore, concluded last week with an overall subscription of 90 times. The Netweb IPO comprised fresh issuance of Rs 206 crore and an offer for sale (OFS) worth Rs 425 crore.
Netweb Technologies shares will be listed on bourses BSE and NSE, and traded with the symbol NETWEB.
Should you buy, sell or hold Netweb Technologies shares?
EDITOR’S TAKE | ‘Big listing gains’
Zee Business Managing Editor Anil Singhvi, who had recommended applying for the Netweb IPO for “big listing gains”, suggests buying the stock from a long-term perspective. He expects the stock to list in the range of Rs 900-950, which translates to a premium of 80-90 per cent over the upper end of the issue price.
He is of the view that investors can hold the stock with a stop loss at Rs 800. He has highlighted the following key points about the company:
Positive
- Experienced promoters with a strong background
- Unique business model
- Strong growth outlook
- Reasonable valuations
Negative
- Low order book
- Low capacity utilisation
- Low margin business
Here are some of the key things to know about the Netweb Technologies IPO:
Subscription
The Netweb IPO received bids for more than 80 crore shares as against the 88.6 lakh shares on offer, a subscription of 90.4 times, according to provisional exchange data. The public offer saw strong participation across all categories of investors.
| Category | Reservation | Subscription (No. of times the shares reserved) |
| Qualified institutional buyers | Up to 50% | 228.9 |
| Non-institutional investors (high net-worth individuals) | At least 15% | 81.8 |
| Retail investors | 35% | 19.2 |
| Total | 90.4 |
Under the IPO, which was open for subscription from July 17 to July 19, Netweb shares were available for bidding on a price band of Rs 475-500 in multiples of 30, translating to Rs 14,250-15,000 per lot. Read more on Netweb Technologies IPO
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