Newgen Software to launch ₹400cr IPO on January 16

MUMBAI: Newgen Software Technologies Ltd, a software products company, on Tuesday said it will launch an initial public offering (IPO) on January 16, seeking to raise over ₹400 crore.

Newgen offers platforms that enable organisations to drive digital transformation of business processes such as automation of routine business functions, making them faster, easier and more accurate and increasing the channels or devices through which these functions can be performed.

The company has priced its shares in a price band of ₹240-245 per share. The offering closes on January 18. The offering comprises a fresh issue of shares worth ₹95 crore and an offer for sale of 13.45 million shares by venture capital investors.

Newgen will utilise the proceeds from the IPO for furnishing its office premises in Noida, on the outskirts of New Delhi.

Venture capital investors selling their stakes include IDG Ventures, Ascent Capital and SAP Ventures. Ascent Capital is selling almost its entire 11.42% stake in Newgen, while IDG and SAP Ventures are selling 4.57% and 3.31%, respectively. Like Ascent, both IDG and SAP Ventures are exiting the company.

At the upper end of the price band, the share sale will collectively fetch the company and the exiting investors ₹424.6 crore.