Netweb Technologies IPO GMP (Grey Market Premium)

In the above case, the GMP trend shows that the grey market premium has opened at around ₹320, but its up by ₹394. Of course, we have to await for the actual subscription numbers to flow in when the issue opens for subscription on 17th July 2023, as that would have a very significant impact on the GMP. In the past, stocks which got oversubscribed in the IPO also saw a very robust positive shift in the grey market pricing. For a start, Netweb Technologies India Ltd has shown good traction in the grey market.

If you consider the upper end of the price band of Netweb Technologies India Ltd at ₹500 as the indicative price, then the likely listing price is being signalled at around ₹815 per share as of the GMP indicator on 14th July 2023. One data point to track will be the subscription update on the stock as that would chart the GMP course from here. As mentioned, the institutional QIB subscription is a key trigger for the GMP pricing.

The GMP of ₹315 on a likely upper band pricing of ₹500 indicates a listing premium of a healthy 63% for Netweb Technologies India Ltd over the listing price. That pre-supposes a listing price of approximately ₹815 per share, when Netweb Technologies India Ltd lists on 27th July 2023. Of course, these are approximations, so you must keep a margin of safety. However, that would depend on the GMP sustaining over the next few days after the issue opens.

GMP (grey market price) is an important indicator, albeit informal, of likely listing price. One cannot take this price at face value However, the GMP tends to be quite dynamic and changes direction with the flow of news and events. Investors must note here that this is just an informal indication and has no official acceptance. The best thing one can do with the GMP is to observe the trend closely as that gives the best hints on listing status. Focus on the time series trend than on numbers.

Netweb Technologies India Ltd is a 24 year old company that provides high-end computing solutions (HCS). This includes computing and supercomputing systems; apart from making available shared infrastructure facilities like private cloud and hyper-converged infrastructure (HCI), AI systems, high performance storage and data centre servers. Netweb Technologies India Ltd also provides the 360 degree solution as it designs, manufactures, and deploys HCS which also comprises of proprietary middleware solutions, end-user utilities, and precompiled application stack. This is the big opportunity with AI an ML being extremely hardware and computing speed hungry. Till date, Netweb Technologies India Ltd has undertaken installations of over 300 Supercomputing systems, 50 private cloud and HCI installations and over 4,000 accelerator-based AI systems.

It has a fairly impressive array of customers. In fact, the customers of Netweb Technologies India Ltd straddle across the sectoral mix. It includes end-user industries like IT, ITES, entertainment, BFSI as well as the government owned defence sector and the education and R&D segment. In terms of specific client portfolios, some examples of its institutional and academic clients include IIT Jammu, IIT Kanpur, NMDC Data Centre, Graviton Research Capital, Institute of Nano Science and Technology, Jawaharlal Nehru University (JNU) etc. It also supports the Indian space program with its existing computing capabilities.