Netweb Raises Rs. 1,200 Crore to Fuel AI Growth

Homegrown computing infrastructure company Netweb Technologies has raised Rs. 1,200 crore through a Qualified Institutional Placement (QIP), marking its first equity capital raise since its stock market listing in July 2023.

The QIP attracted strong participation from domestic and global institutional investors, including Goldman Sachs Asset Management, Nomura Asset Management, Amundi Asset Management, Think Investments, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Kotak Mutual Fund, Tata Mutual Fund, Motilal Oswal Mutual Fund, Invesco Mutual Fund and Edelweiss Mutual Fund, among others.

Under the placement, Netweb allotted approximately 2.51 million equity shares at an issue price of Rs. 4,790 per share. The company plans to use the proceeds primarily to strengthen working capital and support execution of its anticipated growing order book, with part of the capital allocated for general corporate purposes.

The fundraising comes amid rapidly increasing demand for AI infrastructure, high-performance computing (HPC), GPU-based systems and advanced data centre technologies in India. As enterprises, government agencies, research institutions and cloud providers expand their AI computing requirements, domestic infrastructure companies are positioning themselves to capture this emerging opportunity.

Netweb Chairman and Managing Director Sanjay Lodha said the institutional response demonstrates confidence not only in the company's performance but also in the long-term opportunity across AI and high-end computing infrastructure.

The QIP also highlights growing investor interest in India's indigenous AI infrastructure ecosystem. As the country pushes for greater technological sovereignty and expands domestic data centre capacity, companies capable of providing advanced computing platforms could become increasingly strategic.

Despite the successful fundraising, Netweb shares were trading 4.26% lower at Rs. 5,225 on the BSE on Tuesday afternoon.