Newgen Software Technologies Lists with Modest Gains Of Just Over 3%

Shares of Newgen Software Technologies listed on the bourses on Monday and clocked modest gains. The company had tapped the capital markets with its simultaneous issue of fresh shares worth Rs 95 crs and an offer for sale of 1.34 cr shares in a price band of Rs 240-245. The company had allotted 51,99,444 shares to nine anchor investors comprising of 12 entities. The issue was subscribed 8.25 times with QIB portion subscribed 15.62 times, HNI 5.52 times and Retail 5.18 times.

The discovered price on the BSE was Rs 253 while it was Rs 254.10 on the NSE. The high of the day was Rs 266.50 on BSE and Rs 266.70 on the NSE. The low was Rs 245.95 and Rs 246.25 respectively. The share closed at Rs 253, a gain of Rs 8 or 3.27%. On the NSE, the share closed at Rs 252.40 a gain of Rs 7.40 or 3.02%.

Exchange Open High Low Close Net Change % Gain/ Loss Wt.Avg Volume Delivery Del %age
BSE 253.00 266.50 245.95 253.00 8.00 3.27 257.08 2299035 800916 34.84
NSE 254.10 266.70 246.25 252.40 7.40 3.02 257.14 14008351 5011328 35.77
Total 16307386 5812244 35.64

The total traded volume was 163.07 lakh shares which was 94.38% of the issue size of 172.77 lakh shares. Delivery volume was 58.12 lakh shares which was 35.64% of the traded volume and 33.64% of the IPO size. The weighted average of the day’s trade was Rs 257.08 on the BSE and Rs 257.14 on the NSE, implying that the share price fell towards the end of the day while the bulk of the trade happened at higher prices.

There were two bulk trades reported with Malabar India Fund buying 8,25,038 shares at Rs 252.98, On the sell side there was one trade reported where Ecap Equities Limited sold 4,30,000 shares at Rs 258.48. With the buying over and explaining why the share held steady it is likely to be under pressure in the coming days.

In conclusion, one more issue tapped the markets with the bulk of the fund raising by existing promoters and PE investors and very little money for the business. The issue listed successfully and gave small gains to investors on day one. The issue of pricing which is a continuing problem remains overpriced.

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