Newgen Software surges 13% in 2 days after promoters sell 10.57% stake

Shares of Newgen Software Technologies extended their rally into second day, surging 4 per cent to Rs 519.45, on the BSE in Wednesday's intra-day deals after the promoters sold their 10.57 per cent stake in the company via open market on Tuesday. With today's gain, the stock was trading at its fresh all-time high level, having zoomed 13 per cent in two days. In the past one month, it has soared 58 per cent as compared to an 8 per cent gain in the S&P BSE Sensex.

"Diwakar Nigam, chairman & managing director, and T S Varadarajan, whole time director; the promoters of Newgen Software Technologies announced a sale of an aggregate 10.57 per cent equity stake in the Company by the promoters/ promoter group to a group of reputed institutional investors, pursuant to trades on the stock exchange," the company said in a press statement

The aforesaid stake in the Company was sold at an average price of approximately Rs 454 per equity share, which was at a marginal discount to the closing price of the stock on NSE on June 14, 2021 of Rs 458.3 per equity share, it said.

The book building saw a strong demand and interest from marquee institutional investors, both domestic and international. According to data provided by exchanges, Abu Dhabi Investment Authority bought 1.65 million, or 2.36 per cent stake, in Newgen Software Technologies. Besides, Kuber India Fund and Ashoka India Opportunities Fund also purchased 1.57 per cent and 1.43 per cent stake, respectively. 

Post the stake sale, the total promoters holding in Newgen Software Technologies has declined to 55.16 per cent from 65.73 per cent at the end of March 31, 2021.