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Initial Public Offering (IPO) of Delhi-NCR-based Netweb Technologies Ltd, country’s leading high-end computing solutions (HCS) provider, with fully integrated design and manufacturing capabilities was subscribed 9.14 times on the second day of bidding.

The issue received bids of 8,09,39,130 shares against the offered 88,58,630 equity shares, at a price band of ?475-500, according to the data available on the stock exchanges.

Non-Institutional Investors was the most subscribed with a subscription of 18.09 times, followed by Employee Portion with 16.58 times. Retail Portion was subscribed 8.77 times, whereas, Qualified Institutional Buyer Portion was subscribed 2.66 times. The issue kicked off for subscription on Monday, July 17, 2023 and will close on Wednesday, July 19, 2023.

Last week, Netweb Technologies India Ltd had raised Rs 189 crore from anchor investors. Foreign Investors and Domestic Institutions who participated in the anchor were Nippon India Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Aditya Birla Sun Life Mutual Fund, Axis Mutual Fund, White Oak Capital Fund, Motilal Oswal Mutual Fund, Tata Mutual Fund and Franklin India Mutual Fund.

Broking houses like Anand Rathi, Nirmal Bang, Reliance Securities, Geojit Financials, BP Equities (StoxBox), Choice Broking, Arihant Capital, Ventura Securities, Indsec Securities, Hensex Securities, Hem Securities, Investmentz, and Marwadi Financial Services have given a “SUBSCRIBE” rating to the issue.

Brokerage recommendations are largely positive, with analysts highlighting the company's exceptional performance, strong positioning among peers, and its comprehensive range of high-performance computing products and solutions. NTIL's presence in various sectors like government, defense, higher education, and research is seen as a positive factor for future growth. Additionally, the company plans to expand its product portfolio and manufacturing facilities to establish a global presence are viewed favourably. The IPO's valuation, with a PE ranging from 55.1x to 60x based on FY23 earnings, a scarcity premium with no comparable peers is reasonable and fairly priced. Majority of analysts have cited NTIL's strong fundamentals, consistent growth, and potential for capitalizing on growth opportunities in the Indian IT industry.

Equirus Capital Private Limited and IIFL Securities Limited are the book running lead managers and Link Intime India Private Limited is the registrar for the issue.