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Newgen Software IPO hits market, subscribed 19% on day 1

The IPO started on a slow note with only 5 percent of the shares subscribed by 1 pm, data on NSE showed. The share is available in a price band of Rs 240-Rs 245 per share. At the upper end, the public issue would fetch Rs 425 crore.

twitter-logo BusinessToday.in        Last Updated: January 16, 2018  | 17:29 IST
Newgen Software IPO hits market, subscribed 19% on day 1

IT firm Newgen Software Technologies came up with its initial public offer (IPO) today.

The IPO started on a slow note with 19 percent of the shares subscribed by the end of day, data on NSE showed.

The share is available in a price band of Rs 240-Rs 245 per share. At the upper end, the public issue would fetch Rs 425 crore.

The shares of Newgen Software Technologies are proposed to be listed on NSE and BSE.

The share sale will end on January 18. This is the second share sale of 2018 after Apollo Microsystems was subscribed 246 times.

The firm raised over Rs 127 crore from anchor investors yesterday.  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.

(With PTI inputs)

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