Netweb Technologies IPO Subscription: Day 1 Success; Check Details

Netweb Technologies IPO Subscription Update: The initial public offering (IPO) of Netweb Technologies Ltd was well-received on the first day of subscription. The IPO opened on July 17 and will close on July 19.

The response from employees and retail investors was enthusiastic, followed by non-institutional investors (NIIs) and qualified institutional buyers (QIBs).

The retail investors subscribed to the IPO three times, while the employee portion was subscribed 6.60 times. The NIIs portion was subscribed 3.61 times, and the QIBs portion was subscribed to 3%.

So far, the company has received bids for 2,06,05,890 shares out of the total 88,58,630 shares on offer, according to data from the BSE.

In detail, the retail investors' portion received bids for 1,34,67,090 shares against the 44,86,263 shares available. The employees' portion received bids for 1,32,000 shares against the 20,000 shares on offer. The NIIs portion received bids for 69,40,080 shares against the 19,22,685 shares on offer. Lastly, the QIBs portion received bids for 66,720 shares against the 24,29,682 shares available.

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

Prior to the IPO, Netweb Technologies India raised ₹189.01 crore from anchor investors on July 14. The company allocated 37.80 lakh equity shares to 25 anchor investors at the upper price band of ₹500 per share. Among the investors were Nomura Funds, Goldman Sachs Funds, Eastspring Investments India Fund, and others.

Netweb Technologies aims to raise ₹631 crore through the IPO, with ₹206 crore coming from a fresh issuance of shares and ₹425 crore from a promoters' offer to sell shares.

The company plans to utilize the funds for various purposes, including civil construction costs, interior development, and the purchase of machinery and equipment for the new SMT production line. Additionally, the funds will be used for working capital needs, prepayment of outstanding borrowings, and general corporate objectives.

The book running lead managers for the IPO are Equirus Capital Private Ltd and IIFL Securities Ltd. The registrar to the issue is Link Intime India Private Ltd.