Shares of Netweb Technologies India Ltd. declined as much as 10% on Monday, June 29, extending losses for a second straight session. The stock opened lower at ₹4,900 on the National Stock Exchange (NSE) and touched a low of ₹4,451 before recovering to trade around ₹4,467.80 as of 2 PM. According to Business Standard, the counter has lost 13% in two sessions, with trading volume reaching nearly 2.1 million shares according to NSE data. The stock has shown mixed performance with shares closing in green on exactly 5 out of the last 10 sessions, but has declined 11.23% in the past month. The stock is currently 14.74% below its recently scaled 52-week high of ₹5,244.00 and sits 151.89% above its 52-week low of ₹1,775.00.
As reported by CNBC TV18, Netweb Technologies announced that its board will meet on Wednesday, July 1, to evaluate and, if approved, authorise one or more fund-raising proposals. The company filed this information with the stock exchanges, indicating the board's intention to explore various capital raising options to strengthen its financial position. The board meeting comes at a time when the stock is under pressure from institutional liquidations, with massive institutional selling shaking the hardware segment. According to Business Standard, analysts noted that today's correction appears to be driven primarily by the company's announcement that its board will consider a fund-raising proposal, which has raised concerns over potential equity dilution.
According to the exchange filing reported by CNBC TV18, Netweb Technologies may raise capital through multiple instruments including equity shares, preference shares, convertible or non-convertible debentures, warrants or other equity-linked securities. The fund raise could be executed through various routes including a qualified institutions placement (QIP), private placement, follow-on public offer (FPO), rights issue or any other permissible method. The proposal may also include a greenshoe option, where applicable, providing flexibility in the fund raising process. As reported by Business Standard, the company informed in its exchange filing on June 28 that the board will consider proposals for raising funds through issuance of any instrument or security, including equity shares, preference shares, fully or partly convertible debentures, non-convertible debentures along with warrants, any other equity-based securities or any combination thereof, with or without green shoe option, in one or more tranches/issuances including, inter alia, by way of a qualified institutions placement, private placement, follow-on public offer, rights issue and/or any other method or combination.
The potential capital raising initiative comes as Netweb Technologies seeks to strengthen its financial position through various fund raising mechanisms. As reported by Business Standard, analysts noted that investors are now reassessing valuations and awaiting clarity on the size, pricing and utilisation of the proposed capital raise. The company has delivered strong performance with 45% gains so far in 2026, outperforming the benchmark Nifty 50 which has declined nearly 8.5%. Over one year, the stock has surged 147%, emerging as a multibagger while the Nifty 50 has fallen 6.5%. The fall also came amid renewed volatility in semiconductor stocks that have reignited concerns that the AI-led rally may be losing steam. Netweb Technologies is a leading provider of server, storage, and high-performance computing (HPC) solutions, serving companies including AMD, Intel, Nvidia and Samsung.
For the March 2026 quarter, Netweb Technologies reported strong financial results with 65.7% Y-o-Y rise in profit after tax at ₹705.9 million. According to Business Standard, operating income grew by 86.6% Y-o-Y to ₹7,737 million. For the entire fiscal year 2026, the company's profit stood at ₹2,058.2 million, up 81% Y-o-Y, while income increased by 90% to ₹21,835.6 million. The strong financial performance continues to provide a strong structural growth opportunity driven by demand for AI infrastructure, high-performance computing, sovereign AI projects and data centre investments.
