Shares of Netweb Technologies India Ltd. rose as much as 3% on Friday after the company raised Rs 1,200 crore through a qualified institutional placement (QIP). The stock was trading at Rs 5,463.20 apiece after opening 0.37% lower at Rs 5,400. It later recovered to touch an intraday high of Rs 5,579.
The company said in a regulatory filing that its QIP, which opened on Aug. 17, was closed on Aug. 20 after it received application forms and funds in the escrow account from eligible qualified institutional buyers.
Netweb Technologies approved the allocation of 25,05,219 equity shares to eligible institutional buyers at an issue price of Rs 4,790 per share, including a premium of Rs 4,788 per share.
The issue price was at a 1.96% discount to the floor price of Rs 4,885.90 per share, or a discount of Rs 95.90 per share, in accordance with SEBI's Issue of Capital and Disclosure Requirements regulations. The share allotment at Rs 4,790 apiece takes the total QIP size to about Rs 1,200 crore.
Netweb Technologies India Ltd. is among the best-placed companies to benefit from India's artificial intelligence infrastructure buildout, according to Bank of America, which initiated coverage on the multibagger stock with a 'Buy' rating and a target price of Rs 5,000. BofA's target price implies an upside of around 14% from the stock's last closing price of Rs 4,417.
Netweb Technologies India Ltd. Share Price Today
Netweb Technologies India Ltd.
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The scrip rose as much as 2.94% to Rs 5,579 apiece on Friday at 9:38 a.m. This compares to a 0.01% rise in the NSE Nifty 50 Index.
It has risen 165.58% in the last 12 months and 76.49% year-to-date. Total traded volume so far in the day stood at 1.42 times its 30-day average. The relative strength index was at 64.22.
ALSO READ: Netweb Tech Launches QIP To Raise 1,200 Crore; Sets Floor Price
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