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Diwakar Nigam, chairman & managing director and T S Varadarajan, whole time director, (jointly referred as promoters) of Newgen Software Technologies, on Tuesday, 15 June 2021, announced a sale of an aggregate 10.57% equity stake in the company by the promoters/promoter group to a group of institutional investors, pursuant to trades on the stock exchange.
The shares were 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 14 June 2021 of Rs 458.30 per equity share.
The sale is subject to settlement in accordance with secondary market settlement procedures of the stock exchanges/clearing corporations. Upon settlement, the aggregate equity shareholding of the promoter/promoter group in the company will comprise 55.16% of the total paid-up equity share capital of the company.
Commenting on the divestment, the promoters said, "The book building saw strong demand and interest from marquee institutional investors, both domestic and international, thus reposing their confidence and faith in Newgen's business, its promoters and senior management team. We remain steadfast in working towards furthering the best interests of all our stakeholders."
As of 31 March 2021, the promoter group held 65.73% stake in Newgen Software.
As per the bulk deal data on the BSE on 15 June 2021, Diwakar Nigam sold 27,98,228 equity shares (or 3.99% stake) at an average price of Rs 454.20, Priyadarshini Nigam sold 13,99,114 equity shares (or 1.99% of equity) and Varadrajan sold 31,96,000 shares of (representing 4.56% of equity) at an average price of Rs 454 per share.
At the same time, Abu Dhabi Investment Authority bought 16,52,000 shares (or 2.36% stake), Al Mewar Commercial Investments purchased 6,21,000 equity shares (or 0.88% of equity), Ashoka India Opportunities Funds bought 10,01,000 shares (1.43% or equity), India Acorn Fund bought 3,73,000 shares (or 0.53% equity), Kuber India Fund purchased 11,01,000 shares (or 1.57% of equity), MS Param Value Investment bought 5,00,000 equity shares (or 0.71% equity) and Mukul Mahavirprasad Agrawal purchased 6,00,000 shares (or 0.85% of equity) at an average price of Rs 454 per share.
Newgen is a leading provider of low code digital automation platform. On a consolidated basis, Newgen Software Technologies reported 48.9% jump in net profit to Rs 52.73 crore on 7.8% rise in revenue from operations to Rs 200 crore in Q4 FY21 over Q3 FY21.
Newgen Software was up 3.44% to Rs 515.85, extending its winning run to fifth consecutive trading session. Shares of Newgen Software rallied 18% in five trading sessions from its previous closing low of Rs 436.95 on 9 June 2021. The counter hit a record high of Rs 521 in intraday today. The stock has zoomed 267% from its 52-week low of Rs 140.30 on 17 June 2021.
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