Netweb Technologies, a server maker, has filed its DRHP with Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). The company intend to raise Rs 257 crore by a fresh issue and there is also an offer for sale by the promoters where the promoters are looking to sell about 8.5 million shares.

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Based in Delhi, Netweb also provide private cloud, hyper converged infrastructure, AI enterprise workstations, data centers etc. Bulk of the money raised through this IPO will be used for funding the company's long-term working capital requirements. Since it has some capex plans as well, about Rs 128 crore will go towards that.

Netweb has earlier participated in the Production Linked Incentive (PLI) scheme of the government. Last year, its revenues were about Rs 250 crore and the revenue in the first six months this year have been about Rs 143 crore with a profit after tax (PAT) of about 8-10 percent.

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The risk associated with the company

More than 50 percent of its revenues comes in from the government. So, they are dependent on the Indian government for their tenders and these tenders are competitively participated in.

The company's order book has come down in the last six months and currently stands at Rs 100 crore. Maybe the company has executed more projects in the last six months.

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(Edited by : C H Unnikrishnan)