Netweb Technologies India Ltd has filed draft documents with the Securities and Exchange Board of India (Sebi) to raise funds through an IPO.

The IPO will involve a fresh issue of shares worth Rs 275 crore and an offer for sale (OFS) of up to 85 lakh shares by the company’s existing shareholders and promoters.

The OFS will include up to 28.6 lakh shares in Sanjay Lodha, up to 14.3 lakh shares each in Navin Lodha, Vivek Lodha and Niraj Lodha, and up to 13.5 lakh shares in Ashoka Bajaj Automobiles Pvt Ltd.

Equirus Capital and IIFL Securities are the lead managers for the offering.

Approximately Rs 32.77 crore of the funds raised in the offering will be used for civil construction of the Surface Mount Technology (SMT) line building, in-house development and equipping the new SMT line facility by purchasing necessary equipment and machinery.

The company plans to allocate Rs 128 crore for working capital requirements and Rs 22.50 crore to repay outstanding debt.

Netweb provides India’s High-End Computing Solutions (HCS) with fully integrated design and manufacturing capabilities. As a leading Indian wholly-owned and majority-owned OEM in the HCS market, it specialises in supercomputing systems, private cloud and HCI, data centre servers, AI systems, enterprise workstations, and HPS solutions.

In FY22, the company reported a substantial year-on-year increase in revenue from Rs 142.79 crore to Rs 247.03 crore. Net profit jumped from Rs 8.23 ​​crore to Rs 22.45 crore, and the EBITDA margin increased from 11.13% to 14.37%.

The company’s total borrowings as of September 2022 stand at Rs 27.59 crore. The company’s total order book stood at Rs 98.12 crore as of February 2023, down from Rs 127.99 crore in FY22.