Newgen Software Rises 8.9% Over IPO Price On Market Debut

Newgen Software Technologies Ltd. listed at a premium to the issue price and rose on the first day of trading.

The stock opened at Rs 253 on the BSE Ltd., 3.3 percent higher than the IPO price. It then rose as much as 8.9 percent to Rs 266.70 apiece.

The information technology company’s Rs 425-crore initial public offering was subscribed 8.25 times. It raised Rs 127 crore by selling shares to institutional investors as part of the anchor book allocation before its initial public offering.

Financial Highlights

• Newgen Software’s net worth stood at Rs 272 crore for the half year ended September 2017, translating into a book value per share of Rs 39.
• Its revenue clocked a compounded annual growth rate of 17.7 percent, and net profit rose at 6.3 percent in three years to March 2017. Newgen was able to report only single-digit profit growth due to lack of stability in operating margins.

• Newgen’s revenue and net profit for the half year ended September 2017 stood at Rs 207 crore and Rs 6 crore, respectively.
• The working capital cycle for the company stood at 189 days for the year ended 2017. That’s because it takes nearly 205 days on an average to receive dues from clients.