Connect with us

Hi, what are you looking for?

Finance

Newgen Software plans to raise Rs 450 crore via IPO

NEW DELHI: Indian IT firm Newgen Software Technologies is pl..

NEW DELHI: Indian IT firm Newgen Software Technologies is planning to raise around Rs 450 crore through initial public offer, which it expects to launch this month.

"We are financially doing very well and registering good growth year-on-year. The IPO is mainly to provide exit or monetisation opportunity to some of our existing investors who have been with us since very long time. Around Rs 95-100 crore of the total fund will be used for setting up a new office in Noida," Newgen Software MD Diwakar Nigam told PTI.

Newgen Software recorded consolidated revenues of Rs 433.76 crore for 2016-17 and an operating profit of Rs 52.36 crore.

The company, established in 1992, deals in business process management software for banks, business process outsourcing firms, government organisations and sell products across 60 countries.

"We have applied for approvals before Registrar of Companies and are planning to raise Rs 450 crore from the IPO. We will be diluting around 25-26 per cent stake, which includes 21 per cent stake of private equity investors and rest by employees. We have some employees who have been with us since very long time and they may like to monetise stake they hold. None of the promoters are diluting their stake in the IPO," Nigam said, adding that he expects IPO to be launched this month.

Ascent Capital, IDG Ventures, Vistra ITCL and SAP Ventures are investors in Newgen Software.

"The segment in which we operate is a USD 18 billion industry globally and expected to be USD 30 billion. We have started expanding our overseas footprint. In India and Middle East we are a dominant player. We are looking for global opportunity now and Gartner has recognised as one of the leading player, which has helped us in generating business lead in overseas market," he added.

The company has overseas offices in the US, Canada, Singapore, United Kingdom and Dubai.

Nigam said that the company has made significant investment in setting up sales team in the US where there is a big opportunity with presence of about 1,500 banks.

"We already have 7-8 banks in the US using our platform and we have pipeline of 140 banks there. In total, we manage mission critical operations of 459 large enterprises, mainly in financial and insurance segment. This includes organisations like ICICI, Life Insurance Corporation of India, Kotak Mahindra Bank, Bank of Baroda, United Arab Bank, Mercantile Bank etc," he added.

He said that Newgen has registered compounded annual growth rate of 21 per cent over last five years and expects similar growth in coming years.

"We have seen lots of great software services companies from India. We are one of the unique software product company from India that has global footprint. Product companies take a lot of time to mature, but then they have a great future," Nigam said.

The company has workforce of around 2,200 employees out of which 238 are part of its research and development team.

"We have 32 patents registered for BPM software and now working on host of new technologies, including artificial intelligence, robotic process automation etc," Nigam said.

Original Article

[contf]
[contfnew]

ET Markets

[contfnewc]
[contfnewc]

Finance

In an interview with ET Now, Dabur India Director Mohit Burm..

Science

The 147th Open championship will be at Carnoustie Golf Club in Scotland. Jan Kruger/R&A Golfers ..

Tech

Enlarge Oliver Morris/Getty Images) In response to an Ars re..

Tech

Enlarge/ You wouldn't really want to use Nvidia's ..