Netweb Technologies India shares recorded an 82 percent rally on debut on July 27 despite a sharp correction in the equity markets. Robust IPO subscription numbers and healthy financial performance supported the sentiment.
The stock opened at Rs 947 on the NSE, an increase of 89.4 percent over the issue price of Rs 500 per share, which was slightly better than analysts' expectations as well as the grey market premium. It saw some selling pressure initially and dropped up to Rs 876 but rebounded immediately and went above Rs 900 mark in late-morning deals.
Finally, the stock settled at Rs 910.40, up 82 percent with a volume of 1.7 crore equity shares on the NSE, while the closing price was Rs 910.50 with a volume of 11.02 lakh shares on the BSE.
Netweb was the third highest gainer amongst IPOs listed this year, after Ideaforge Technology (up 92.8 percent gains on listing day) and Utkarsh Small Finance Bank (up 91.8 percent).
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"The strong listing was in line with expectations as the company has a strong track record of growth and its financial performance has been improving in recent years," Anubhuti Mishra, Equity Research Analyst at Swastika Investmart, said.
She feels Netweb Technologies is well-positioned to benefit from the growth of the high-end computing market in India as it has a strong focus on the niche business segment of high-end computing solutions.
Despite higher valuations, Prashanth Tapse, Senior VP Research at Mehta Equities, believes that with the Digital India initiative and push by the government, Netweb is in a favourable position to leverage growth in the Indian supercomputing market and private cloud services.
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The high-end computing solutions provider has raised Rs 631 crore via the public issue. The price band for the offer, which was subscribed over 90 times during July 17-19, was Rs 475-500 per share.
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