New Delhi-headquartered Newgen Software Technologies is reportedly gearing up to launch an initial public offering (IPO) later this month. Through the move, the IT company is aiming to raise a total of $71 Mn (INR 450 Cr).
Commenting on the development, Newgen Software MD Diwakar Nigam said, “We have applied for approvals before Registrar of Companies and are planning to raise $71 Mn (INR 450 Cr) from the IPO. 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.”
As stated by Nigam, through the public offering, Newgen Software is looking to dilute around 25%-26% stake, of which 21% will be from private equity investors. The rest will be sold by the company’s existing 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,” added Nigam.
Of the total fundraise, around $15 Mn-$15.7 Mn (INR 95 Cr-INR 100 Cr) will be used to set up a new office in Noida, sources close to the development revealed.
A Bit About Newgen Software Technologies
Founded in 1992, Newgen Software is an IT company headquartered in New Delhi. It is a global provider of Business Process Management (BPM), Enterprise Content Management (ECM), Customer Communication Management (CCM), Document Management System (DMS), Workflow and Process Automation. The firm currently sells its products across 60 countries.