Newgen Software Technologies Limited IPO is set to open for subscription on January 16, with a price band of Rs 240-245 per share.
Company details: Newgen Software Technologies is Delhi-based Software Product Company. Newgen offers product and platform that enables organizations to rapidly develop powerful software applications. Company mainly offers products in ECM and BPM space. Company sells its products through direct sales and through its 300 strong channel partners globally.
Newgen Software Technologies Limited IPO Details
Issue Open: Jan 16, 2018 – Jan 18, 2018
Issue Type: Book Built Issue IPO
› Fresh Issue of [.] Equity Shares of Rs 10 aggregating up to Rs 95.00 Cr
› Offer for Sale of 13,453,932 Equity Shares of Rs 10 aggregating up to Rs [.] Cr
Face Value: Rs 10 Per Equity Share
Issue Price: Rs 240 – Rs 245 Per Equity Share
Market Lot: 61 Shares
Minimum Order Quantity: 61 Shares
Listing At: BSE, NSE
Objects of the Newgen Software Technologies Limited IPO Issue:
The Offer comprises a Fresh Issue by the Company and an Offer for Sale by the Selling Shareholders.
1. Offer for Sale
The Offer includes an Offer for Sale of 13,453,932 Equity Shares by the Selling Shareholders. Company will not receive any proceeds from the Offer for Sale by the Selling Shareholders.
2. Fresh Issue
The objects for which the Net Proceeds of the Fresh Issue will be utilized are as:
a. Purchase and furnishing of office premises near Noida-Greater Noida Expressway, Uttar Pradesh; and
b. General corporate purposes
Strengths of Company / Reasons to invest in Newgen Software Technologies Limited IPO
- Software product company with industry analyst recognition.
- Diversified revenue streams from multiple geographies with low customer concentration.
- Strong balance sheet and stable cash flows
Risk Factors / Reasons not to invest in Newgen Software Technologies Limited IPO
- Profits are in declining mode and Software/Product Software companies in India would continue to be under margin pressure.
- New product development is a long, expensive and uncertain process.
Grey Market Price Trend as on 15 January 2017 : NIL
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