IPO Note : Netweb Technologies India Ltd By Nirmal Bang Ltd
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Incorporated in 1999, Netweb Technologies India provides high-end computing solutions (HCS). It offers high-performance computing (supercomputing/HPC) systems; private cloud and hyper-converged infrastructure (HCI); AI systems and enterprise workstations; high-performance storage (HPS/enterprise storage system) solutions; data center servers, softwares and services .
Objects and Details of the Issue:
The public issue consists of Offer For Sale aggregating upto Rs 425 Cr and fresh issue of equity shares aggregating upto Rs 206 Cr. Cr. The net proceeds from the fresh issue will be utilised towards: i) Funding capital expenditure requirements of (a) the building for the surface mount technology (SMT) line and interior development (b) Purchase of machinery for the new SMT production line (Rs. 32.2 Cr); iii) Funding of long-term working capital requirements (Rs. 128 Cr) iv) Prepayment of certain borrowings (Rs. 22.5 Cr).
Investment Rationale:
* HPC market has strong tailwinds
* Strong relationship with customers
* High entry barriers to business
* New product lines and expanding geographic presence
* Strong and consistent financial performance
Valuation and Recommendation:-
Netweb Technologies intends to leverage its presence in the fast growing HCS (High end Computing Solutions) industry with focus on developing refined, customised computing systems to address the high-end computational requirements of customers. Netweb is thus able to generate high EBITDA margins and ROCE. There are no directly comparable peers in the listed space who are present in the HCS industry. Thus we compare Netweb with EMS players who are mainly into manufacturing of electronic components and are also supported by strong growth due to favorable industry tailwinds. We believe, Netweb possesses higher growth and return ratios compared to EMS players and is also available at cheaper valuations. Thus we recommend to Subscribe to the IPO.
To Read Complete Report & Disclaimer Click Here
Please refer disclaimer at https://www.nirmalbang.com/disclaimer.aspx
SEBI Registration number is INH000001766
Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer
