The issue with a face value of Rs 2 per equity share consists of a fresh issue of equity shares worth up to Rs 257 crore and an offer-for-sale (OFS) of up to 8.5 million equity shares by Promoters selling shareholders.

The offer for sale comprises of up to 2.86 million equity shares by Sanjay Lodha, up to 1.43 million equity shares by Navin Lodha, up to 1.43 million equity shares by Vivek Lodha, up to 1.43 million equity shares by Niraj Lodha, and up to 1.35 million equity shares by Ashoka Bajaj Automobiles Private Limited.

Delhi-NCR based server maker Netweb Technologies India Limited, one of the country’s leading high-end computing solutions (HCS) provider has filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise funds through an Initial Public Offering (IPO).

The issue with a face value of Rs 2 per equity share consists of a fresh issue of equity shares worth up to Rs 257 crore and an offer-for-sale (OFS) of up to 8.5 million equity shares by Promoters selling shareholders.

The offer for sale comprises of up to 2.86 million equity shares by Sanjay Lodha, up to 1.43 million equity shares by Navin Lodha, up to 1.43 million equity shares by Vivek Lodha, up to 1.43 million equity shares by Niraj Lodha, and up to 1.35 million equity shares by Ashoka Bajaj Automobiles Private Limited.

The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Investors and not less than 35% of the Offer shall be available for allocation to Retail Individual Investors.

The company, in consultation with the lead bankers to the issue, may consider a pre-IPO placement aggregating up to Rs 51 crore. If such placement is completed, the fresh issue size will be reduced.

As per the DRHP, the proceeds from the issue will be utilized to the extent of Rs. 32.77 crore for funding its capital expenditure, Rs 128.02 crore for funding its long-term working capital, Rs 22.50 crore for repayment or pre-payment, in full or in part, of certain of its outstanding borrowings and general corporate purposes.

Netweb Technologies is one of the few OEMs in the country is a recipient of production linked incentives schemes of the Government of India under the ‘Make in India’ policy for IT Hardware (IT Hardware PLI Scheme) and Telecom and Networking Products Manufacturing in India (Telecom and Networking PLI Scheme).

In terms of number of HPC installations, it is one of the most significant OEMs in India amongst others. Kabru was one such supercomputer which it was installed at IMSC Chennai. It has a speed of 1382 teraflops (Rpeak). AIRWAT which was recently deployed for an R&D organisation of MeITY has a speed of 6080 teraflops (Rpeak) as is expected to be India’s Largest and Fastest AI Supercomputing System.

Netweb has both design and manufacturing capabilities inhouse and deployed over 300 supercomputing systems and over 4000 accelerator / GPU based AI systems and enterprise workstations as of February 2023. Intel, Samsung, AMD, NVIDIA are some of the companies it collaborates with to innovate on product offerings.

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 offer. The equity shares are proposed to be listed on the BSE and NSE.