Newgen Software Technologies, an Indian IT firm is planning to raise around Rs 450 crore through Initial Public Offer (IPO). The company is expecting to launch it this month.
Diwakar Nigam, MD of Newgen Software, stated in a statement, “We are financially doing very well and registering good growth year-on-year. The IPO is mainly to provide exit or monetization opportunities to some of our existing investors who have been with us for a very long time. Around Rs, 95-100 crore of the total fund will be used for setting up a new office in Noida.”
The company recorded consolidated revenues of Rs 433.76 crore for 2016-17 and an operating profit of Rs 52.36 crore.
Nigam further added, “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 percent stake, which includes 21 percent stake of private equity investors and rest by employees. We have some employees who have been with us for a very long time and they may like to monetize the stake they hold. None of the promoters are diluting their stake in the IPO.”
Newgen Software has investors like Ascent Capital, IDG Ventures, Vistra ITCL, and SAP Ventures.
“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 the Middle East, we are a dominant player. We are looking for global opportunity now and Gartner has recognized as one of the leading players, which has helped us in generating a business leader in the overseas market,” Nigam said.
Newgen Software is having overseas offices in the US, Canada, Singapore, the United Kingdom, and Dubai.
Nigam said that the company has made significant investments in setting up sales teams in the US where there is a big opportunity with the presence of about 1,500 banks.
He further said, “We already have 7-8 banks in the US using our platform and we have a pipeline of 140 banks there. In total, we manage mission-critical operations of 459 large enterprises, mainly in the financial and insurance segment. This includes organizations like ICICI, Life Insurance Corporation of India, Kotak Mahindra Bank, Bank of Baroda, United Arab Bank, Mercantile Bank, etc.”
Newgen Software is having a workforce of around 2,200 employees out of which 238 are part of its research and development team.
