• Fri. Dec 8th, 2023

Netweb Technologies IPO: RHP flags documentary evidence of 2 promoters ‘untraceable’; Check all major risk factors

Netweb Technologies IPO: RHP flags documentary evidence of 2 promoters ‘untraceable’;  Check all major risk factors

“Degree certificates related to educational qualifications of our promoters, who are also directors of our company, Naveen Lodha (Graduate in Commerce from Shaheed Bhagat Singh College, Delhi University) and Vivek Lodha (Bachelor’s Degree in Commerce from Shaheed Bhagat Singh College, Delhi University) cannot be found, ‘ said NetWeb Tech in its RHP.

The statement also said that the promoters have taken necessary steps to obtain relevant supporting documentation including making written application to the above universities/colleges. RHP.

“Accordingly, our company relies on the affidavits given to us by these promoters and copies of correspondence with the concerned university to disclose the details of their educational qualifications in this red herring prospectus,” Netweb Tech said. RHPs are filed with stock exchanges and capital markets regulator Securities and Exchange Board of India (SEBI).

Netweb Technologies IPO: Check All Risk Factors

Apart from the above risk, RHP has flagged additional risk factors ahead of the public issue which are as follows:

-The Company derives the majority of its revenue from operations from certain of its select HCS offerings. A loss or decrease in demand for such offerings could adversely affect our business, revenues from manufacturing operations and financial condition.

-The Company does not have any comparable listed peer companies that HCS offers for performance comparison, therefore, investors should rely on their own examination of the Company’s accounting ratios for investment purposes in the Offer.

The Company will not receive any proceeds from the Offer for Sale (OFS). The selling shareholders will receive the net proceeds from the OFS.

Some of the regulatory measures initiated by SEBI involved promoters. A member of its promoter group is involved in a regulatory proceeding initiated by SEBI.

-There are some factual inaccuracies in some of their corporate documents and corporate filings. The Company has in the past paid sufficient stamp duty on share certificates for allotment of equity shares. It also made delayed filings with the RoC and some payment challans related to corporate filings made by the company were untraceable.

– The company had lower capacity utilization in fiscal years 2023, 2022 and 2021. RHP said a reduction in actual production or an inability to consistently achieve higher production could adversely affect its installed capacity utilization.

-The Company does not engage in hedging transactions regarding its foreign currency exposure. Any loss resulting from fluctuations in foreign currency exchange rates could adversely affect its business, results of operations and financial condition.

Netweb Technologies IPO: Price Band and Other Details

According to the IPO details, in the offer for sale (OFS), Sanjay Lodha will sell up to 28.6 lakh shares, while Naveen Lodha, Vivek Lodha and Niraj Lodha will offload 14.3 lakh shares each. Ashoka Bajaj Automobiles LLP will sell 13.5 lakh shares in the OFS.

The price band for the company’s upcoming public issue has been announced 475-500 per share. NetWeb Technologies’ IPO, which is open until July 19, includes a new issue of par value shares. 206 crore and selling up to 85 lakh shares by its existing promoters and shareholders. At higher band prices, the company is expected to raise 631 crore through IPO.

The company is expected to finalize the IPO allotment on July 24 and begin refunds on July 25, while the shares will be credited to the demat accounts of eligible allottees on July 26. NetWeb Technologies shares will be listed on BSE and NSE on July 27.

Netweb Technologies proposes to use the proceeds from the new issue for capital expenditure requirements 32.3 crore and more 128.02 crore will be used for long-term working capital purposes. as well as, 22.5 crore will be utilized for repayment of outstanding loans.

Netweb Technologies IPO GMP today

Shares of Netweb Technologies Ltd made a strong debut in the unlisted stock market ahead of its subscription opening date. NetWeb Technologies shares are available at a premium 338 in the gray market today, say market watchers.

According to them, Netweb Technologies IPO is a gray market today 338, which means Gray Market expects the NetWeb Technologies IPO listing price to be around 838 ( 500+ 338), which is about 67 percent higher than the NetWeb Technologies IPO price band. From 475 500 per equity share. Hence, the gray market is very bullish on the upcoming IPO. The mainboard IPO is expected to attract a strong response from investors, indicating a gray market.

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