Netweb Technologies tanks 10%; what's dragging this multibagger stock?

Analysts said that today's correction in Netweb Technologies appears to be driven by announcement that its board will consider a fund-raising proposal, raising concerns over potential equity dilution.

Netweb Technologies India shares came under sharp selling pressure on Monday ahead of the company's board meeting to consider a fundraise. The stock extended its losses for a second straight session, falling as much as 10 per cent intraday. It opened lower at ₹4,900 on the National Stock Exchange (NSE) and touched a low of ₹4,451.

 

In two sessions, the counter has lost 13 per cent, according to exchange data.

 

Ponmudi R, CEO, Enrich Money, said 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.  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. It is a product and solution provider for companies including AMD, Intel, Nvidia and Samsung.

 

 

As of 2 PM, Netweb Technologies share were down 9.6 per cent at ₹4,467.80. A total of nearly 2.1 million shares of the company changed hands, according to NSE data.

 

In an exchange filing on June 28, Netweb Technologies informed that the board is scheduled to meet on July 1 (Wednesday) to "consider, evaluate and if thought fit, approve, any and all proposals for raising of funds through issuance of any instrument(s) or security(ies), 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-onpublic offer, rights issue and/or any other method or combination." 

 

Ponmudi added that Netweb Technologies has delivered a strong rally over the past year and was trading near its 52-week high, resulting in premium valuations. 

 

"Investors are now reassessing valuations and await clarity on the size, pricing and utilisation of the proposed capital raise," he said. 

 

Netweb Technologies shares have rallied sharply over the past year. According to NSE data, the stock has gained 45 per cent so far in 2026, outperforming the benchmark Nifty 50, which has declined nearly 8.5 per cent. In one year, the stock has surged 147 per cent, emerging as a multibagger, while the Nifty 50 has fallen 6.5 per cent.

 

"Demand for AI infrastructure, high-performance computing, sovereign AI projects and data centre investments continues to provide a strong structural growth opportunity. The near-term movement is largely sentiment-driven, while the long-term outlook will depend on how effectively the company deploys the fresh capital to drive earnings growth," the analyst added. 

 

For the March 2026 quarter, Netweb had reported 65.7 per cent Y-o-Y rise in its PAT at ₹705.9 million. Its operating income grew by 86.6 per cent 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 per cent Y-o-Y, and income increased by 90 per cent to ₹21,835.6 million.  =================================================== 

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