The funds generated from the fresh issue will be allocated towards capital expenditure needs, long-term working capital requirements, and repayment of debt.
The IPO comprises a fresh issue of equity shares worth Rs 206 crore and an offer-for-sale (OFS) of 85 lakh equity shares by promoters. Those selling shares in the OFS are Sanjay Lodha, Vivek Lodha, Navin Lodha, Niraj Lodha, and Ashoka Bajaj Automobiles LLP. Proceeds to the tune of Rs 32.77 crore will be used to fund capital expenditure, Rs 128.02 crore to support long-term working capital, Rs 22.5 crore for debt payment, besides for general corporate purposes.
The initial share sale will be open for public subscription during July 17-19. The bidding for anchor investors will open on July 14, according to the company.
Netweb Technologies has set the price band for its IPO at Rs 475-500, with the offering opening on 17 July and closing on 19 July. Investors will be able to bid for a minimum of 30 equity shares, with the company anticipating to use the funds for long-term working capital, funding its capital expenditure, as well as debt repayment.