Shares of Newgen Software Technologies jumped over 3% to conclude at Rs 253 on Monday as the New Delhi based IT firm got listed on stock exchanges today after winding up its Rs 424 crore IPO (initial public offering) earlier in this month. Shares of Newgen Software Technologies surged as much as 8.77% to the day’s high of Rs 266.5 after opening up 3.27% at Rs 253 on BSE while the stock rose 8.85% to the day’s high of Rs 266.7 on NSE today. On the first day of trading, about 1.63 crore shares of Newgen Software Technologies exchanged hands on both NSE and BSE with more than 1.4 crore shares on NSE alone. The stock of Newgen Software Technologies gained 3.27% to conclude at Rs 253. As per today’s closing price, Newgen Software Technologies commanded a market capitalisation of Rs 1,751.66 crore.
Earlier this month, Newgen Software Technologies share sale got subscribed by a total of 8 times as at the end of last day of bidding, backed by strong demand from institutional investors. Newgen Software Technologies raised Rs 424 crore on the higher end of the price band of Rs 240-245. Through the public offer, Newgen Software Technologies successfully diluted 5.6% of its post-offer paid-up equity share capital. The IPO of Newgen Software Technologies saw bids for a total of 9,71,21,638 shares as against issue size of 1,22,12,821 shares, implying subscription of nearly 8 times. The issue constituted of fresh issue worth of Rs 95 crore and offer for sale worth of Rs 330 crore (at the upper end of price band).
The objectives of the IPO for the Company are to purchase and furnish office premises near Noida-Greater Noida Expressway, Uttar Pradesh and general corporate purposes. Founded in 1992, Newgen Software Technologies Limited (NSTL) is a New Delhi based IT company and a provider of Business Process Management (BPM), Enterprise Content Management (ECM), Customer Communication Management (CCM), Document Management System (DMS), Workflow and Process Automation. The company has more than 450 active customers, with clients spread over 60 countries. The company sells its products to banks, insurance firms, BPOs and healthcare organizations. It has offices in the US, Canada, the United Kingdom, Singapore, and Dubai.
Meanwhile, Domestic markets finish at record highs with Sensex and Nifty concluding at fresh peaks after rallying heavily in the intraday trades. The 30-share barometer Sensex zoomed 393.54 points to hit a record high of 36,443.98 before settling up 232.81 points or 0.65% at 36,283.25 while the wider share indicator Nifty added 101.9 points to mark a fresh peak of 11,171.55 before ending up 60.75 points or 0.55% at 11,130.4. Shares of Eicher Motors, Maruti Suzuki, HDFC, UPL, Bharti Infratel, TCS, Hero MotoCorp, Indian Oil Corporation, Indiabulls Housing Finance, Tata Steel, Kotak Mahindra Bank, Zee Entertainment Enterprises, Bajaj Auto, HDFC Bank, Tech Mahindra, L&T, Sun Pharma emerged as the major gainers on NSE Nifty rising 1-4%.