Netweb Technologies IPO: All about home-grown HPC manufacturer

Supercomputer systems manufacturing company Netweb Technologies launched its initial public offering (IPO) today, July 17. The company plans to raise ₹631 crore, of which ₹206 crore would be a fresh issue, and the remainder is an offer for sale by promoters. The issue closes on July 19.

Founded in 1999, Netweb Technologies specialises in high-end computing solutions, serving sectors like information technology (IT), IT-enabled services, media, entertainment, banking and financial services, data centres, and government. The company has 16 offices in the country, with a manufacturing facility in Haryana. In the financial year 2023, the company’s revenue increased by 80% year-on-year to ₹445 crore, compared to ₹247 crore in the previous fiscal.

To date, the company has deployed four supercomputers, counted among the world’s top supercomputers. The first was Kabru, deployed at the Indian Institute of Mathematical Science in Chennai in 2004; in 2013, the company deployed Param Yuva II at the Centre for Development of Advanced Computing, Pune; the third was Param Ambar at the Indian Space Research Organisation (Isro) in 2019. In 2023, the company deployed Airawat PSAI, which is considered India’s largest and fastest artificial intelligence supercomputing system; globally, it is ranked 75th in the list of top 500 supercomputers.

Overall, the company’s information catalog says that the company has deployed over 300 supercomputing systems and 4,000 AI systems and enterprise workstations. Some of its most significant partnerships include Nvidia, AMD and Samsung.

In 2021, Netweb qualified for the production-linked incentive scheme (PLI) for IT hardware. It was among 14 applicants to qualify under the scheme. At the time, the company said that it is looking to manufacture motherboards and other hardware products in India. The Faridabad-based company also opened a new research and development facility in Hyderabad with a headcount of 50.

The next year in 2022, Netweb qualified for the PLI scheme for telecom and networking products. The company was among the 42 beneficiaries with a committed outlay of ₹ 4,115 crore.

The funds raised through the IPO will be utilised for funding its capital expenditure, repayment of debt (fully or in part), and long-term working capital, along with general corporate expenditure. 

This year in June, drone manufacturing company IdeaForge got listed. It was reported that the company intended to raise ₹567 crore with a fresh issue of shares worth ₹240 crore and the remaining ₹327 crore by promoters and investors.