Newgen Software's Rs 4.25-billion IPO gets 70% subscription on Day 2

The initial public offer of IT firm Newgen Software Technologies was subscribed 70 per cent on the second day of its listing today.

The IPO, which aims to raise Rs 4.25 billion, received bids for 85.54 lakh shares against the total issue size of over 12.2 million scrips, registering a subscription of 70 per cent, data available with the National Stock Exchange (NSE) showed.

The portion reserved for retail investors was subscribed 1.33 times, while that for qualified institutional buyers (QIBs) witnessed a subscription of 10 per cent.

The company had raised over Rs 1.27 billion from anchor investors on Monday. The initial share-sale of Newgen Software's will be open for public subscription until tomorrow.

Newgen Software's initial public offer (IPO) comprises a fresh issue of shares worth up to Rs 95 crore by the company and an offer for sale of 13,453,932 equity shares by the existing shareholders.

The price band has been fixed at Rs 240-245 per share. At the upper end, the public issue would fetch Rs 4.25 billion.

Proceeds from the fresh issue will be utilised towards purchase and furnishing of office premises near Noida-Greater Noida Expressway in Uttar Pradesh and for other general corporate purposes.

Newgen is a software products company offering a platform that enables organisations to develop applications addressing their strategic business needs.