We are planning to raise INR 424 crore via IPO: Newgen Software,...

We are planning to raise INR 424 crore via IPO: Newgen Software, Diwakar Nigam

 

Newgen Software Technologies Limited (Newgen) is a software products company offering a platform which comprises of Enterprise Content Management (ECM), Business Process Management (BPM) and Customer Communication Management (CCM). The company has 450 active customers in over 60 countries.

Yash Ved of Newbarons provides you the highlights of a media interaction, where Newgen Software MD Diwakar Nigam says, “We will expand our business and geographical footprint and expand prodict portfolio through investment in advanced features.

NB: Brief us about your IPO plans?

Diwakar: We are planning to raise INR 424 crore via IPO. The company will be launching its initial public offering which is scheduled to open on Tuesday, January 16, 2018 and close on Thursday, January 18, 2018, with a price band of Rs. 240 to Rs. 245 per equity share of face value of Rs. 10/- each of the Company (the “Equity Shares”).

ICICI Securities Limited and Jefferies India Private Limited are the Global Co-ordinators and Book Running Lead Managers to the Offer. IDFC Bank Limited is the Book Running Lead Managers to the Offer. The Registrar to the Offer is Karvy Computershare Private Limited.

The Equity Shares of Newgen Software Technologies Limited is proposed to be listed on National Stock Exchange of India and BSE Limited.

NB: What is your business strategy?

Diwakar: We will expand our business and geographical footprint and expand prodict portfolio through investment in advanced features.

We will focus on attractive verticals in select mature markets.

We are continuously investing in product offerings. Our R&D spend has increased from INR 20 crore to INR 31 crore.

NB: What are the objects of the issue?

Diwakar: The objects of the issue will be utilised for purchase and furnishing of office premises near Noida-Expressway , Uttar Pradesh and for general corporate purposes and offer for sale by the selling shareholder.

NB: What is your employee strength?

Diwakar: Our current employee strength stood at 2318. About 260 employees are in R&D.

NB: Brief us about your Financials?

Diwakar: We have registered 21% CAGR growth over the last 5 years. The revenue for FY17 was at INR 4338mn.

NB: What is your revenue mix?

Diwakar: About 40% of our revenue comes from India and remaining 60% comes from Globally.

Out of 60%, 27% of our revenue comes from Middle East, 26% from USA and remaining 7% from APAC.