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Company Background

Netweb Technologies India Limited (NTIL) was incorporated on September 22, 1999. Netweb Technologies India Limited provides high-end computing solutions (HCS). It 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 the rising computational demands of businesses, academia, and research organizations, particularly, under India's National Supercomputing Mission. Two of the company's supercomputers have been listed 10 times in the world's top 500 supercomputers.

Issue Details:

Fresh Issue of Equity Shares aggregating upto ? 206 Cr and Offer for Sale aggregating upto ? 425 Cr.

Issue Objectives :

1. Funding capital expenditure requirements for civil construction of the building for the surface mount technology (SMT) line and interior development, and purchase of equipment/machinery for the new SMT production line (SMT Line),

2. Funding of long-term working capital requirements,

3. Repayment or pre-payment, in full or in part, of certain outstanding borrowings, and

4. General corporate purposes.

Outlook and Valuation :

NTIL is one of India’s leading Indian-origin-owned and controlled OEM for HCS with integrated design and manufacturing capabilities. The Company also has a long-standing relationship with a marquee and diverse customer base. Though the issue appears lucratively priced based on FY23 performance. Management’s sound understanding of the HCS segment, experienced board and senior management and significant product development to drive growth. At the upper price band of ? 500/-, stock is priced at 55.12x its FY23 EPS. We recommend subscribing to the issue from a long-term perspective.

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