ALSO READIndiamart plans to launch IPO, process to begin next financial year Reliance MF files offer document for Rs 2,000-cr IPO Sandhar Technologies files draft papers for Rs 300-cr IPO to repay loan Astron Paper IPO over-subscribed 243.20 times GIC Re IPO receives 79% subscription so far on first day
Indian IT firm Newgen Software Technologies is planning to raise around Rs 4.5 billion through the initial public offer, which it expects to launch this month. "We are financially doing very well and registering good growth year-on-year. The IPO is mainly to provide exit or monetisation opportunity to some of our existing investors who have been with us for very long time. Around Rs 950 million-1 billion of the total fund will be used for setting up a new office in Noida," Newgen Software MD Diwakar Nigam told PTI. Newgen Software recorded consolidated revenues of Rs 4.33 billion for 2016-17 and an operating profit of Rs 523.6 million. The company, established in 1992, deals in business process management software for banks, business process outsourcing firms, government organisations and sell products across 60 countries. "We have applied for approvals before Registrar of Companies and are planning to raise Rs 4.5 billion from the IPO. We will be diluting around 25-26 per cent stake, which includes 21 per cent stake of private equity investors and rest by employees. We have some employees who have been with us for very long time and they may like to monetise stake they hold. None of the promoters is diluting their stake in the IPO," Nigam said, adding that he expects IPO to be launched this month. Ascent Capital, IDG Ventures, Vistra ITCL and SAP Ventures are investors in Newgen Software. "The segment in which we operate is an $18 billion industry globally and expected to be $30 billion. We have started expanding our overseas footprint.
In India and the Middle East, we are a dominant player. We are looking for a global opportunity now and Gartner has recognised as one of the leading player, which has helped us in generating the business lead in the overseas market," he added.The company has overseas offices in the US, Canada, Singapore, United Kingdom and Dubai. Nigam said that the company has made a significant investment in setting up the sales team in the US where there is a big opportunity with the presence of about 1,500 banks. "We already have 7-8 banks in the US using our platform and we have a pipeline of 140 banks there. In total, we manage mission-critical operations of 459 large enterprises, mainly in financial and insurance segment. This includes organisations like ICICI, Life Insurance Corporation of India, Kotak Mahindra Bank, Bank of Baroda, United Arab Bank, Mercantile Bank etc," he added. He said that Newgen has registered compounded annual growth rate of 21 per cent over last five years and expects similar growth in coming years. "We have seen lots of great software services companies from India. We are one of the unique software product company from India that has a global footprint. Product companies take a lot of time to mature, but then they have a great future," Nigam said. The company has a workforce of around 2,200 employees out of which 238 are part of its research and development team. "We have 32 patents registered for BPM software and now working on a host of new technologies, including artificial intelligence, robotic process automation etc," Nigam said.