Server maker Netweb Technologies India Limited and Agri-input manufacturer Nova Agritech Limited has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).
Netweb Technologies and Nova Agritech filed preliminary IPO papers with Sebi on March 28 and March 03, 2023 respectively.
Netweb’s issue has a face value of Rs 2 per equity share consisting of a fresh issue of equity shares worth up to Rs 206 crore and an offer-for-sale (OFS) of up to 8.5 million equity shares by Promoters selling shareholders.
The offer for sale comprises of up to 2.86 million equity shares by Sanjay Lodha, up to 1.43 million equity shares by Navin Lodha, up to 1.43 million equity shares by Vivek Lodha, up to 1.43 million equity shares by Niraj Lodha, and up to 1.35 million equity shares by Ashoka Bajaj Automobiles Private Limited.
On June 30, 2023, the company, in consultation with the lead bankers to the issue, raised Rs 51 crore in a Pre-IPO placement from institutional investors, including LG Family Trust, Anupama Kishore Patil, 360 ONE Special Opportunities Fund- Series 8, 360 ONE Monopolistic Market Intermediaries Fund.
As per the DRHP, the proceeds from the issue will be utilized to the extent of Rs. 32.77 crore for funding its capital expenditure, Rs 128.02 crore for funding its long term working capital, Rs 22.50 crore for repayment or prepayment, in full or in part, of certain of its outstanding borrowings and general corporate purposes.
Netweb Technologies, an HCS provider based in India, serves a diverse range of Indian and multinational customers within the country. Throughout the years, the company has focused on enhancing its technological expertise, as well as its capabilities in design and development. This commitment is exemplified by its growing customer base, showcasing its ability to thrive in the highly competitive Indian market.
Equirus Capital Private Limited and IIFL Securities Limited are the book-running lead managers and Link Intime India Private Limited is the registrar for the offer. The equity shares are proposed to be listed on the BSE and NSE.
While the issue of Nova Agritech has a face value of Rs 2 per equity share consists of a fresh issue of equity shares worth up to Rs 140 crore and an offer-for-sale (OFS) of up to 77,58,620 equity shares by Nutalapati Venkatasubbarao.
Out of the proceeds from the fresh issuance, an amount of Rs. 14.20 crore will be utilized for Investment in its subsidiary, Nova Agri Sciences Private Limited for setting up a new formulation plant, Rs 10.49 crore for funding Capital Expenditure by the Company, towards expansion of its existing formulation plant, Rs 26.69 crore for funding of working capital requirement, Rs 56.74 for Investment in its subsidiary, Nova Agri Sciences Private Limited for funding working capital requirements and general corporate purposes.
The Company manufactures, distributes and markets a wide range of product categories consisting of soil health management products; crop nutrition products; biostimulant products; biopesticide products; Integrated Pest Management (IPM) products; new technologies; and crop protection products. Currently, the crop protection products are manufactured by the subsidiary Nova Agri Sciences Private Limited.
Keynote Financial Services Limited and Bajaj Capital Limited are the book-running lead managers and Bigshare Services Pvt. Ltd. is the registrar to the offer.
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