Foreign institutional investors (FIIs) and domestic institutional investors (DIIs)—including Citigroup Global Markets Mauritius, ICICI Prudential MF, and Societe Generale—purchased stakes in one of India’s top high-end computing solutions (HCS) providers, on Friday, for nearly Rs. 458.65 crores through open market transactions.
With a market capitalisation of Rs. 12,653.5 crores, the shares of Netweb Technologies India Limited opened at Rs. 2,316.95 on Monday, marking a decline of 1.3 percent from its previous closing price of Rs 2,346.05.
What’s the News:
According to block deal data from the NSE, Citigroup Global Markets Mauritius Private Limited, Discovery Global Opportunity Mauritius Limited, ICICI Prudential Mutual Fund, Invesco Mutual Fund, Societe Generale, and Union Mutual Fund bought a total of nearly 20.54 lakh equity shares in Netweb Tech, representing a 3.64 percent stake.
The shares were bought at an average price of Rs. 2,232.1 per share, bringing the total combined deal value to Rs. 458.65 crores.
Concurrently, four promoters—Navin Lodha, Sanjay Lodha, Niraj Lodha, and Vivek Lodha—sold an equivalent number of shares at the same average price on the NSE via a block deal.
Following this transaction, the combined shareholding of the promoters and promoter group will decrease from 75.04 percent to 71.4 percent in Netweb Technologies.
Financials:
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of 148.8 percent from Rs. 60 crores in Q1 FY23-24 to Rs. 149.3 crores in Q1 FY24-25.
Similarly, its net profit increased during the same period from Rs. 5 crores to Rs. 15.4 crores, indicating a growth of around 208 percent YoY.
As of June 2024, the company’s order book stood at Rs. 419.7 crores, increasing by 322 percent YoY from Rs. 99.4 crore in June 2023.
The Income from AI Systems has grown by 146 percent YoY, and its contribution to the company’s operating revenue increased to 14.6 percent in the June quarter.
Stock performance:
The stock has delivered nearly 155.3 percent of multibagger returns in one year and around 61.3 percent returns in the last six months. So far in 2024, the shares of Netweb Technologies India have given about 91.2 percent of positive returns.
About the company:
Established in 1999, Netweb Technologies India Limited is an India-based provider of high-end computing solutions (HCS) with fully integrated design and manufacturing capabilities.
Its offerings include high-performance computing (supercomputing/HPC) Systems, private cloud and Hyperconverged Infrastructure (HCI), AI Systems and enterprise workstations, high-performance storage (HPS), data centre servers, Enterprise Grade Network Switches and software and services for HCS offerings.
Written by Shivani Singh
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