Netweb Technologies Block Deal: Rs.459 Crore Worth of Shares Exchanged

Netweb Technologies India (NTI) is a top provider of high-end computing solutions (HCS) in India, offering design and manufacturing services. Yesterday, shares of Netweb Technologies worth Rs.459 crore were sold in a block deal which consisted of approximately 20.5 lakh shares, representing a 3.64% stake in the company. The shares were exchanged at an average price of Rs.2,232 per share. 

Promoters as Likely Sellers

While the specific parties involved in the deal remain undisclosed, the reports suggest that promoters Sanjay Lodha, Navin Lodha, Vivek Lodha, and Niraj Lodha were looking to sell 20.54 lakh shares of the company, aiming to raise over Rs.447.90 crore. Combined, these four promoters held a 74.75% stake in Netweb Technologies. Sanjay Lodha had the largest shareholding at 29.9%, with Navin, Vivek, and Niraj Lodha each holding 14.95%.

Financial Performance

Two weeks prior to the block deal, Netweb Technologies announced a more than threefold increase in net profit to Rs.15.4 crore for Q1FY25. The company’s total income rose to Rs.153.21 crore in Q1FY25, compared to Rs.60.2 crore in Q1FY24. Sanjay Lodha, Chairman and Managing Director, highlighted the impact of AI systems on their revenue, with AI contributing over 14.6% to the operating revenue, reflecting a y-o-y growth of 146%.

Market Performance 

Shares of Netweb Technologies, which debuted in the stock market in July last year at an issue price of Rs.500 per share, have surged fourfold since their IPO. The stock is up 6.5% today, reaching lower at Rs.2,402 per share and gained 103% year-to-date with a 167% rise since its debut.

Conclusion: In conclusion, this block deal of Netweb Technologies showcases a well thought move to capitalize on the company’s strong market performance and raise funds for the growth of the company. Despite the slight discount of 1% in the transaction price, the company’s financial growth and positive market sentiment brings out its potential for growth in the coming years.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.