Newgen Software stock logs nearly 4% listing gain on BSE, NSE

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Newgen Software stock logs 4% listing gain on BSE, NSE

IT firm Newgen Software Technologies made its debut on BSE and NSE today. The stock rose up to 8.77% over the issue price of Rs 245.

At 1:50 pm, the stock was trading over 3.88% or 9.5 points higher at 253.85 on BSE. The stock jumped 8.77 per cent to Rs 266.50, its highest intra day level. The stock closed 3.27% or 8 points higher than its issue price at 253 level. 

The company's Rs 425-crore IPO was subscribed more than 8 times during January 16-18. The price band for the offer was fixed at Rs 240-245 per share.

Proceeds from the issue will be utilised towards purchase and furnishing of office premises near Noida-Greater Noida Expressway in Uttar Pradesh and for other general corporate purposes. ICICI Securities, Jefferies India and IDFC Bank were the book running lead managers to the offer.

This was the second share sale of 2018 after Apollo Microsystems was subscribed 246 times.

The firm raised over Rs 127 crore from anchor investors.  The company's IPO committee has finalised allocation of 5,199,444 equity shares to nine anchor investors at Rs 245 apiece, also the upper price band for the offer, Newgen Software informed the stock exchanges. At this price, the total amount works out to be Rs 127.38 crore, it added.

Among the anchor investors are Goldman Sachs, SBI Mutual Fund, HDFC Trustee Company, Aditya Birla Sun Life Trustee Pvt Ltd and Forefront Alternative Investment Trust.

The IPO comprises fresh issue of shares worth up to Rs 95 crore by the company and an offer for sale of 13,453,932 equity shares by the existing shareholders. Proceeds from the fresh issue will be utilised towards purchase and furnishing of office premises near Noida-Greater Noida Expressway in Uttar Pradesh and for other general corporate purposes.

Newgen is a software products company offering a platform that enables organisations to develop applications addressing their strategic business needs.

Set up in 1992, Newgen offers business process management software across sectors such as banks, government organisations, pharmaceutical and shared services.

It gets about 40 per cent of its revenues from India, 27 per cent from Middle East, and 26 per cent from the US. Its revenue stood at Rs 433.7 crore in financial year 2016-17, while net profit for the same was Rs 52.3 crore.

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