Netweb Tech shares rise 4% as Nomura, Goldman Sachs invest in Rs 1,200 crore QIP

Shares of Netweb Technologies India experienced a strong upward surge during Friday morning trade, rising nearly 3.9% to hit a fresh 52-week high of Rs 5,642.00 per share on the BSE. The sharp move in the stock came right after the high-performance computing solution provider announced the formal closure and allotment of its Rs 1,200 crore qualified institutional placement (QIP).

The enterprise server maker informed stock exchanges late Thursday night that its fund-raising committee had approved the allotment of 25.05 lakh equity shares with face value of Rs 2 each to eligible institutional buyers. The issue price was set at Rs 4,790 per equity share, which includes a premium of Rs 4,788 per share. This issue price reflects a slight discount of 1.96% (or Rs 95.90 per share) against the SEBI-calculated regulatory floor price of Rs 4,885.90 per share.

Major institutional allottees

Global institutional heavyweights led the list of major subscribers in the fundraise. Japanese investment firm Nomura secured the single largest allocation of 13.10% (3,28,064 shares) through its Nomura India Investment Mother Fund. Wall Street titan Goldman Sachs was another prominent participant, securing an 11.21% stake (2,80,740 shares) through the Goldman Sachs India Equity Portfolio.


Domestic institutional investors also absorbed a substantial chunk of the placement. ICICI Prudential Mutual Fund picked up a total 16.67% stake (4,17,476 shares) across six of its underlying schemes, including its Flexicap Fund and Innovation Fund. Foreign portfolio investor Think India Opportunities Master Fund LP acquired an 8.33% block (2,08,768 shares).

Similarly, Edelweiss Mutual Fund schemes alongside Altiva Hybrid Long-Short Fund collectively secured an 8.33% allocation (2,08,768 shares), while Invesco India Flexi Cap Fund picked up a 6.25% stake (1,56,577 shares).

Capital base expansion & growth outlook

Following this equity allotment, Netweb's total paid-up equity share capital expanded from Rs 11.38 crore to Rs 11.88 crore, increasing the total outstanding share count from 5.69 crore to 5.94 crore equity shares.

The successful capital raise, which initially launched on August 17 and wrapped up on August 20, comes on the heels of impressive financial growth. For the first quarter, Netweb reported a net profit of Rs 85.3 crore, nearly tripling from Rs 30.4 crore in the same period last fiscal year. Revenue from operations surged to Rs 819 crore from Rs 301 crore year-on-year, while EBITDA margins remained steady at 14.6%.

The stock continues its strong trajectory, having gained 31.58% over the past month and rising nearly 82.11% so far this year.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)