Indian high-end computing solutions provider Netweb Technologies India has raised approximately ₹1,200 crore through a Qualified Institutional Placement (QIP), marking its first equity capital raise since listing on the NSE and BSE in July 2023.
The company said the issue received participation from domestic and global institutional investors.
The Fund-Raising Committee of Netweb’s Board of Directors approved the allotment of equity shares under the QIP on August 20. The company allotted 25,05,219 equity shares with a face value of ₹2 each at an issue price of ₹4,790 per share, including a premium of ₹4,788.
Netweb plans to use the net proceeds to meet working capital requirements and support the execution of its anticipated order book growth. The funds will also be used for general corporate purposes, in line with the objectives set out in the placement document.
The QIP drew investments from institutional investors including Goldman Sachs Asset Management, Nomura Asset Management, Amundi Asset Management, Think Investments, ICICI Prudential MF, Edelweiss MF, Invesco MF, HDFC MF, Kotak MF, Tata MF, Motilal Oswal MF, Bank of India MF, Trust MF and Helios MF, among others.
Netweb said the participation reflects investor confidence in its business and the growth of India’s high-performance computing market and AI ecosystem.
“This QIP represents an important milestone in our journey and reflects confidence not only in our performance, but also in the long-term opportunity across AI and high-end computing infrastructure,” Sanjay Lodha, Chairman and Managing Director of Netweb Technologies, said.
Lodha said India is entering a multi-year build-out of AI and advanced computing infrastructure, driven by national initiatives, enterprise adoption and demand for secure and sovereign computing. He added that Netweb’s more than two decades of experience in high-end computing, along with its design and manufacturing capabilities and portfolio of AI systems, supercomputing, private cloud and high-performance storage solutions, positions it to participate in this opportunity.
“The capital raised strengthens our balance sheet and financial flexibility and enhances our ability to support the working-capital requirements in line with anticipated growth in our scale of operations and order book,” Lodha said.
He added that the company will continue to strengthen its Make-in-India design and manufacturing capabilities, deepen technology partnerships and invest in innovation.
Founded in 1999, Netweb provides high-end computing solutions across high-performance computing, private cloud and hyperconverged infrastructure, AI systems, high-performance storage and data centre servers.
The company has three manufacturing facilities in Delhi-NCR’s Faridabad and 23 properties across India. It serves customers in government and defence, higher education and research, financial services, IT and IT-enabled services, oil and gas, and enterprise sectors.
Your reaction
Discussion
What's your take on this story?
No comments yet — be the first to share your view.