Netweb's fantastic debut

There was a fantastic new listing on the bourses today morning; Netweb Tehcnologies made a stellar debut, listing at a 90% premium; as against the IPO price of Rs.500, the stock got listed on the BSE at Rs.942 and at Rs.947 on the NSE.

The IPO had received a very good response, subscribing 90.55x, led mainly by QIBs whose quota was booked 220.69x, HNIs by 83.21x and retail investors by 19.48x.

The company provides high-end computing solutions, with supercomputing and private cloud solutions, accounting for 3/4^th of its FY23 revenue of Rs. 445 cr. Three of company’s proprietary supercomputers feature in world’s Top 500, including ‘Param Ambar’ used by ISRO. Artificial intelligence (AI), currently accounts for 7% of revenue, but can grow exponentially given the sector tailwinds. Netweb has technological collaboration with Intel, AMD Inc, Samsung, Nvidia, Seagate and is not a contract manufacturer, unlike many listed electronic manufacturing services (EMS) peers. Indian Government organisations (like higher education and research institutes, space and defence firms) accounting for half the revenue.

In the IPO Analysis, we had concluded - Company’s strong business model caters to the ‘products of the future’, with the sector having high entry barriers. Netweb’s growth track record and attractive pricing make the IPO a ‘subscribe’.