Newgen Software's Rs 4.2-bn IPO subscribed 2.11 times on final day of offer

The initial public offer (IPO) of IT firm Newgen Software Technologies was fully subscribed by the afternoon trade today, the final day of the offer.

The IPO, which aims to raise Rs 4.25 billion, received bids for 25.8 million shares as against the total issue size of over 12.2 million scrips, registering a subscription of 2.11 times, the NSE data till 1230 hrs showed.

The portion reserved for retail investors was subscribed nearly two times, while that for qualified institutional buyers (QIBs) witnessed a subscription of 10 per cent.

The company had raised over Rs 1.27 billion from anchor investors on Monday. The initial share-sale of Newgen Software opened on January 16 and will close today.

The IPO comprises fresh issue of shares worth up to Rs 950 million by the company and an offer for sale of 13,453,932 equity shares by the existing shareholders.

The price band has been fixed at Rs 240-245 per share. At the upper end, the public issue would fetch Rs 4.25 billion.

Proceeds from the fresh issue will be utilised towards purchase and furnishing of office premises near Noida-Greater Noida Expressway in Uttar Pradesh and for other general corporate purposes.

Newgen is a software products company offering a platform that enables organisations to develop applications addressing their strategic business needs.