Local server manufacturer Netweb Technologies India Ltd. has submitted draught papers to capital markets watchdog Sebi in order to raise up to Rs 700 crore through an IPO (IPO). According to the draught red herring prospectus, the IPO consists of a new issue of equity shares worth Rs 257 crore and an offer for sales of 85 lakh equity shares by the founders (DRHP). Sanjay Lodha, Vivek Lodha, Navin Lodha, Niraj Lodha, and Ashoka Bajaj Automobiles Pvt Ltd are selling shares in the OFS.

The company may consider a pre-IPO placement aggregating up to Rs 51 crore and if such placement will be completed the fresh issue size will be reduced. According to merchant banking sources, the IPO size is estimated to be Rs 600-700 crore. Proceeds of the fresh issue to the tune of Rs 32.77 crore will be used to fund capital expenditure, Rs 128.02 crore to support long-term working capital, Rs 22.5 crore for debt payment, besides, general corporate purposes. Delhi NCR-based Netweb Technologies is one of the country’s leading high-end computing solutions (HCS) providers.

It is one of the few original equipment manufacturers (OEMs) in the country and is a recipient of production-linked incentives schemes of the Government of India. For the fiscal year 2022, the company’s revenue from operations increased 73 per cent to Rs 247.03 crore against Rs 142.79 crore a year ago and net profit for the period surged to Rs 22.45 crore as against Rs 8.23 crore last year. For the six months ended September 30, 2022, revenue from operations stood at Rs 143.02 crore and net profit stood at Rs 14.73 crore. Equirus Capital and IIFL Securities are the book-running lead managers to the issue. The equity shares of the company will be listed on the BSE and NSE.