Netweb Technologies India Limited is one of India's leading high-end computing solutions (HCS) provider, with fully integrated design and manufacturing capabilities. Company's HCS offerings comprises (i) high performance computing (Supercomputing / HPC) systems; (ii) private cloud and hyperconverged infrastructure (HCI); (iii) AI systems and enterprise workstations; (iv) high performance storage (HPS / Enterprise Storage System) solutions; (v) data centre servers; and (vi) software and services for the HCS offerings. Netweb is one of India's leading Indian origin, owned and controlled OEM in the space of HCS providing Supercomputing systems, private cloud and HCI, data centre servers, AI systems and enterprise workstations, and HPS solutions. In terms of number of HPC installations, they are one of the most significant OEMs in India amongst others. Since the inception of the erstwhile sole proprietorship, until May 31, 2023, they have undertaken installations of (i) over 300 Supercomputing systems, (ii) over 50 private cloud and HCI installations; (iii) over 4,000 accelerator / GPU based AI systems and enterprise workstations; and (iv) HPS solutions with throughput storage of up to 450 GB/ sec Company caters to marquee Customers across various end-user industries such as information technology, information technology enabled services, entertainment and media, banking, financial services and insurance (BFSI), national data centres and government entities including in the defence sector, education and research development institutions (Application Industries) such as IIT Jammu, IIT Kanpur, NMDC Data Centre Private Limited (NMDC Data Centre), Airamatrix Private Limited (Airamatrix), Graviton Research Capital LLP(Graviton), Institute of Nano Science and Technology (INST), HL Mando Softtech India Private Limited (HL Mando), Dr. Shyam Prasad Mukherjee International Institute of Information Technology, Naya Raipur (IIIT Naya Raipur), Jawaharlal Nehru University (JNU), Hemvati Nandan Bahuguna Garhwal University (Hemvati University), Akamai India Networks Private Limited (Akamai), A.P.T. Portfolio Private Limited (A.P.T.), and Yotta Data Services Private Limited (Yotta), Centre for Computational Biology and Bioinformatics, Central University of Himachal Pradesh (CUHP University). They also cater to an Indian Government space research organisation and an R&D organisation of the Ministry of Electronics and Information Technology, Government of India which is involved in carrying out R&D in information technology and electronics and associated areas including Supercomputing. Company operates out of the manufacturing facility located in Faridabad, Haryana (Manufacturing Facility) which is equipped with capabilities to (i) design, develop, manufacture and test the products, and (ii) cater to the software and service portfolio. In addition to the registered office in Faridabad, they have 16 offices across India. They have recently, in Fiscal 2023, forayed into developing new product lines, viz., Network Switches and 5G ORAN Appliances. As per financial performance, Netweb Technologies India Limited has posted total income / net profits of Rs 144.29 Cr / Rs 8.17 Cr (FY21) and Rs 247.94 Cr / Rs 22.55 (FY22) and Rs 445.65 Cr / Rs 46.98 Cr (FY23). So as per previous financials data, company has shown very good growth. Company has an average EPS of Rs 6.28 and average RoNW of 64.35% for last three fiscals. Issue is priced at a P/BV of 27.19 as per NAV of 18.39 as on 31.03.23. If we attribute latest earnings of FY22 on fully diluted equity post issue, then asking price is at a P/E of around 125 and as per FY23 earnings P/E is around 60, which looks fully priced. As per RHP, peers comparison is shown in above table. On BRLM's front, two lead managers are associated with this IPO, and have handled around 42 IPOs in last three fiscals.Equirus Capital Private Limited : This is 11the IPO from this BRLM. From last 10 IPOs, 2 opened below issue price and remaining opened above issue price or at par on the day of listing. As of now, from last 10 IPOs, 2 are trading below issue price and remaining are trading above issue price or at par. (As on 12.07.2023) IIFL Securities Limited : This is 33rd IPO from this BRLM. From last 10 IPOs, one opened below issue price and remaining opened above issue price or at par on the day of listing. As of now, from last 10 IPOs, one is trading below issue price and remaining are trading above issue price or at par. (As on 12.07.2023) As per financials, Netweb Technologies India Limited has shown good growth, RoNW is 68.01% and P/E is respectively 125 and 60 as per FY22 and FY23 earnings, which looks fully priced. Company is in business of high end computing solutions, and is expected to do well in future. Performance of BRLM is good. So, we give SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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