Good news for investors! This server making company is bringing IPO of 700 crores

Netweb Technologies IPO: If you like to invest money in IPO (IPO News), then this news is of your use. Server-making giant Netweb Technologies India Limited (Netweb Technologies IPO) is going to bring its IPO soon. The company has set a target of raising Rs 700 crore through this IPO. According to the documents submitted by the company to the market regulator Securities and Exchange Board of India (SEBI), Netweb is going to bring a total IPO of Rs 700 crore. Out of this, new shares worth Rs 257 crore will be issued. At the same time, a total of 85 lakh shares will be sold by the promoters of the company through Offer For Sale. Let us inform that the promoters of the company Naveen Lodha, Vivek Lodha, Sanjay Lodha and Ashok Bajaj are about to sell their shares in the company.

The company is also preparing to bring a pre-placement of Rs 51 crore before bringing the IPO. If the company does this, then the size of the IPO is likely to be slightly smaller. According to the Draft Red Herring Prospectus (DHRP), the size of Netweb’s IPO can be between Rs 600 and Rs 700 crore.

Where will the company use the fund

According to the news, the company will spend Rs 28.02 crore for its working capital out of the total deposited amount by selling the old shares. At the same time, Rs 32.77 crore will be spent for capital expenditure. At the same time, with the remaining amount, the company will meet the rest of its corporate needs. The listing of shares will be done in BSE and National Stock Exchange.

What is the business of the company?

Netweb Technologies is a Delhi based company that works in making servers. It is one of the few companies in the country that manufactures original equipment. This company has also been selected for the PLI scheme of the government. In the last financial year, there was an increase of 73 percent in the company’s earnings through operation and it became Rs 247.03 crore. At the same time, in the financial year 2021, this figure was only Rs 142.79 crore. The company’s net profit for the quarter ended September was Rs 14.72 crore.

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