The company has filed the draft prospectus with Sebi. The shares are proposed to be listed at the stock exchanges of Delhi, Mumbai and NSE. The company has roped in DSP Merrill Lynch as the lead manager.

Incorporated in 1992, the company has been promoted technocratic entrepreneurs - Diwakar Nigam and T S Varadarajan - who have over 20 years of experience in design, development and marketing of software products and services.

Newgen Software provides electronic document management solutions (EDMS), which enable various document intensive organisations such as banking, telecom, insurance and various service organisations to improve productivity through better document management.

The IPO proceeds will be used for part-funding an expansion project. The project involves setting up a 100 per cent subsidiary (WOS) in USA (it is mandatory for the arm to repatriate dividends amounting to $60,000 per annum for three consecutive years commencing from 1999 and export obligation of $40.65 lakh by year 2001), one offshore development centre each in or around Delhi and in Chennai and market offices in UK and Singapore. The company is investing Rs 4.98 crore in equipment for the proposed development centres.

Besides, the company also proposes to strike strategic joint ventures and establish development centres for future expansion in Noida/Gurgaon.

The company has set up a WOS by the name of Eworkstyle.com to provide its document and document related workflow solutions on the Web. EworkStyle.com would be an application service provider (ASP) for small to medium size businesses and will market entire range of Newgens' products, solutions and services. Newgen has presence in Europe, Middle East and south-east Asian markets, through value-added re-sellers and a representative office in Japan.

However, the company is critically depending on Canon and Citibank for a major portion of its income. For fiscal 2000, 55.6 per cent of its revenue came from these two companies.

In March 2000, Newgen has licensed its technology of web centric document management solutions to PaperFly Corporation of USA for $1.5 million.

Against this amount, Newgen has taken a 34.75 per cent stake in PaperFly.

The company has also licensed its imaging technology to Canon Inc, Japan for $1.90 million. Now, according to RBI regulation, PaperFly has to repatriate dividends amounting to $7.5 lakh for four years beginning from 2001.

However, PaperFly is yet to start commercial operations. The company currently has a networth of Rs 19.78 crore. Total income has shown a CAGR of 31 per cent from Rs 7.59 crore in fiscal 1996 to Rs 22.67 crore in fiscal 2000. Operating profit has recorded a CAGR of 23 per cent from Rs 3.72 crore in 1995-1996 to Rs 8.48 crore in fiscal 2000.