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Leading Indian player in Supercomputers Company Overview:

• Netweb Technologies is one of India’s leading high-end computing solutions (HCS) provider, with fully inte- grated design and manufacturing capabilities enabled by blend of proprietary hardware designs, middleware stack and software solutions. It is based out of Haryana and has a manufacturing facility in Faridabad, 16 offic- es (in addition to HO) and 3 R&D centres across India.

• HCS offerings comprises of (1) High performance computing (Supercomputing/HPC) systems (2) Private cloud and hyperconverged infrastructure (PC-HCI) (3) AI systems and enterprise workstations (AI-EW) (4) High per- formance storage (HPS/Enterprise Storage System) solutions (5) Data centre servers (DCS) (6) Software and Services for HCS offerings. Netweb Tech has designed, developed and deployed some of India’s most powerful Supercomputing systems like the AIRAWAT (in 2023 for CDAC), AGASTYA (in 2020 for IIT Jammu), PARAM AM- BAR (in 2019 for ISRO), HARTREE (in 2018 for NISER, Bhubaneshwar) and many others.

• Netweb Tech under its brand name “Tyrone” has engineered solutions like Tyrone Cluster Manager (TCM), KUBYTS, Tyrone VERTA, ParallelStor, Collectivo, Skylus, Tyrone Camarero.

• Supercomputers of Netweb Tech have been listed 11 times in the world's top 500 supercomputers. Since In- ception, Netweb Tech has undertaken installations of (1) 300+ Supercomputing systems (2) 50+ private cloud and HCI installations (3) 4,000+ accelerator/GPU based AI systems and enterprise workstations (4) HPS solu- tions with throughput storage of up to 450 GB/sec.

• Netweb Technologies caters to the rising computational demands of businesses, academia, and research or- ganizations, particularly, under India's National Supercomputing Mission. Marquee clients includes the likes of IIT Jammu, IIT Kanpur, NMDC Data Centre, Airamatrix, Graviton, INST, HL Mando, IIIT Naya Raipur, JNU, Hemvati University, Akamai, A.P.T., Yotta and CUHP University. It also caters to ISRO and R&D organization of the Ministry of Electronics and Information Technology.

• Its technology partners are Intel, AMD, Samsung India Electronics, Nvidia and Seagate India.

• In FY23, Netweb Tech forayed into developing new product lines, viz., High-throughput-Low Latency Network Switches and 5G ORAN Appliances which have critical applications in data centers for enterprise IT and the telecom industry for enabling 5G services. The company is eligible to seek benefits through incentives under IT Hardware PLI Scheme and Telecom & Networking PLI Scheme.

• Financial Highlights: The company reported revenues of Rs. 4.4 bn with EBITDA margins of 15.6% and PAT of Rs. 0.5 bn. PAT margins stood at 10.6% in FY23. The company has an Order Book of 0.9 bn (May 2023) and Rs. 0.7 bn (March 2023). As on March,2023, the book to bill ratio stands at ~0.16x.

Valuation and Outlook:

At the upper price band of Rs. 500, the IPO is valued at P/Ex of 59.7x on FY23 earnings. The company has no like to like peers listed in India. Its future prospects looks promising given the space its operates. We believe the IPO is priced effectively given its unique proposition. We thus assign a “SUBSCRIBE” rating to the IPO.

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