New-Delhi headquartered IT organization Newgen Software has raised $20 million from its anchor investors by selling its shares as a part of anchor book allocation. Today, the company is going to open its $71 million IPO for a three day period till January 18,.
Most of its anchor investors are sovereign wealth funds, mutual funds, and pension funds. Though the anchor investors are getting a guaranteed allotment, they are restricted for a period of 30 days to sell their shares. On the other hand, IPO investors have a choice on selling the shares on the listing day itself.
All the shares were sold to nine institutional investors viz. Goldman Sachs India Ltd, HDFC Trustee Co. Ltd, Forefront Alternative Investment Trust, Aditya Birla Sun Life Pvt. Ltd, BNP Paribas Arbitrage and SBI Mutual Fund besides others at a rate of $3.85 per share.
With this public offering, Newgen Software is planning to release 25-26% stake of with 21% will be acquired by private investors. Remaining shares will be sold by the existing employees of Newgen Software.
In 2008, Newgen Software had raised $7.4 million from Headland Capital Partners and SAP Ventures and $17.3 million in 2014 from IDG Ventures and Ascent Capital. Post this IPO Newgen venture capital investors including IDG Ventures, SAP Ventures and Ascent Capital will take an exit.
Newgen Software was launched in 1992 and is now a global provider (over 60 countries) of Business Process Management (BPM), Enterprise Content Management (ECM), Customer Communication Management (CCM), Document Management System (DMS), Workflow and Process Automation.
A few of its popular clients are TCS, HP and HCL. A number of banks, insurance firms, BPOs, healthcare organisations,etc are also among its clients. Along with India, the company has offices in the US, Canada, the United Kingdom, Singapore and Dubai.
At present, the company has employed over 2,200 employees and around 238 are working research and development.