Netweb Tech Raises ₹1,200 Cr Via QIP, Shares Dip 4%

Netweb Technologies India Ltd. completed its Qualified Institutions Placement (QIP), successfully raising approximately ₹1,200 crore. This significant equity capital infusion marks the company’s first since its listing on the NSE and BSE in July 2023.

Despite the capital raise, Netweb Technologies’ stock experienced a 4 percent decline in Tuesday’s trade, extending a fall into a second consecutive session. The shares reached an intraday low of ₹5,215.25 apiece.

Key Financials and Market Movement

• QIP Amount Raised: ₹1,200 crore
• Equity Shares Allotted: 2,505,219
• Issue Price Per Share: ₹4,790
• Premium Per Share: ₹4,788
• Tuesday’s Share Decline: 4 percent
• Previous Session’s Drop: 2.62 percent
• Listing Date: July 2023

The QIP involved the allotment of 2,505,219 equity shares, each with a face value of ₹2, at an issue price of ₹4,790 per share. This price included a substantial premium of ₹4,788 per share, with the allotment approved by the board on August 20, 2026.

Investor Participation and Fund Utilization

The placement attracted a diverse array of global and domestic institutional investors. Prominent participants included Goldman Sachs Asset Management, Nomura Asset Management, Amundi Asset Management, and Think Investments.

• Global Institutional Investors:
  • Goldman Sachs Asset Management
  • Nomura Asset Management
  • Amundi Asset Management
  • Think Investments
• Indian Mutual Funds:
  • ICICI Prudential
  • Edelweiss
  • Invesco
  • HDFC
  • Kotak
  • Tata
  • Motilal Oswal Mutual Fund

Netweb Technologies intends to primarily allocate the net proceeds from the QIP towards its working capital requirements. This strategic move aims to support the execution of its anticipated growth in order book, with a portion also designated for general corporate purposes as outlined in the placement document.

As an Indian-origin provider of High-end Computing Solutions (HCS), Netweb Technologies boasts integrated design and manufacturing capabilities. Its product offerings span high-performance computing, private cloud and hyperconverged infrastructure, AI systems, high-performance storage solutions, and data-center servers.

The company serves a broad clientele across diverse sectors including government and defense, higher education and research, financial services, IT, oil and gas, and enterprise. Netweb Technologies operates three manufacturing facilities in Delhi-NCR and maintains 23 properties across India, reinforcing its operational footprint.