Shares of Netweb Technologies made a stellar debut at Dalal Street as the stock was listed at Rs 947 on the NSE; What should investors do now?
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Netweb Technologies Listing BSE, NSE: Shares of Netweb Technologies India made a stellar debut at Dalal Street on Thursday as the stock was listed at Rs 947 on the National Stock Exchange (NSE), a premium of 90 per cent, over its issue price of Rs 500. Similarly, the stock made its debut at a premium of 89 per cent at Rs 942.50 on the BSE.
Ahead of the listing, the company’s shares commanded a premium of Rs 390 in the unlisted market.
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. The retail category was subscribed 19.15 times.
Incorporated in 1999, Netweb Technologies provides high-end computing solutions (HCS), offering high-performance computing (supercomputing/HPC) systems; private cloud and hyper-converged infrastructure (HCI); AI systems and enterprise workstations; high-performance storage solutions; data center servers, software and services.
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Netweb Technologies designs, manufactures and deploys HCS comprising proprietary middleware solutions, end-user utilities, and precompiled application stack. It develops homegrown compute and storage technologies, and deploys supercomputing infrastructure to meet demands of businesses, academia, and research organizations.
Equirus Capital and IIFL Securities are to book-running lead managers to the issue, while Link Intime India has been appointed as the registrar to the issue.
What Should Investors Do Now?
Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd., said: “Market witnessed another strong listing with Netweb Technologies IPO, The stock listed on the stock exchanges today at Rs 947 per share, a premium of around 89% over the upper end of the price band of Rs 500. The strong listing was in line with expectations, as the company has a strong track record of growth and its financial performance has been improving in recent years.
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Netweb Technologies is well-positioned to benefit from the growth of the high-end computing market in India, as it has a strong focus on the niche business segment of high-end computing solutions. After listing at such a level, we will suggest to hold as of now with a Stoploss at around Rs 850. However, aggressive investors can still choose to buy during any subsequent dip.”
