The initial public offer (IPO) of Newgen Software Technologies received bids for 22.18 lakh shares on the first day of the bidding for the IPO today, 16 January 2018, data on NSE showed as at 16:45 IST. The IPO was subscribed 0.18 times. The company has fixed the price band of Rs 240 to Rs 245 per equity share. The IPO closes on 18 January 2018.

Ahead of the opening of the IPO, the board of directors of the company at its meeting held on 15 January 2018 finalized allocation of 51.99 lakh equity shares to nine anchor investors at Rs 245 per share.

The offer comprises of fresh issue of up to Rs 95 crore by the company, which at lower price band of Rs 240 per share, works out to 39.58 lakh equity shares and at higher price band of Rs 245, the issue size works out to 38.77 lakh equity shares. Apart from this, the offer for sale consists of up to 1.34 crore equity shares or around Rs 329.62 crore. Thus the total issue size is Rs 424.62 crore.

The objects of the issue are to purchase and furnishing of office premises near Noida-Greater Noida Expressway, Uttar Pradesh to the tune of Rs 8.43 crore; and general corporate purposes.

Newgen Software Technologies reported net profit of Rs 5.65 crore on net sales of Rs 182.78 crore in half year ended 30 September 2017.

Newgen Software Technologies offers a platform to enable organizations 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.