New Delhi: The Rs424.6-crore initial public offering (IPO) of software products maker Newgen Software Technologies Ltd received demand for 19% of the shares on offer on the first day of the sale on Tuesday.

According to data from stock exchanges, as of 5pm, the portion of shares reserved for retail investors in the Newgen IPO was subscribed 32%.

Those set aside for institutional and non-institutional investors were subscribed 1% and 0.5%, respectively.

Newgen has set a price band of Rs240-245 per share for the IPO. The offer will close on 18 January.

The Newgen IPO comprises a fresh issue of shares worth Rs95 crore and an offer for sale of 13.45 million shares by existing venture capital investors.

The company will utilize the proceeds from the fresh issue for furnishing its office premises in Noida, on the outskirts of New Delhi.

Venture capital investors selling their stakes include IDG Ventures, SAP Ventures and Ascent Capital.

Newgen offers a platform that enables organizations to drive digital transformation of business processes. The platform’s applications help automation of routine business functions, making them faster, easier and more accurate, and increasing the channels or devices through which these functions can be performed.

On Monday, Newgen raised Rs127.39 crore by selling shares to nine institutional investors as part of its anchor book allocation. Institutional investors that participated in the anchor book allocation include 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, among others.

ICICI Securities Ltd, Jefferies India Pvt. Ltd and IDFC Bank Ltd are managing the Newgen IPO. Newgen’s share sale is the second IPO in 2018. Last week, Apollo Micro Systems Ltd, a Hyderabad-based firm catering to the defence sector, launched a Rs156 crore IPO. Apollo Micro Systems’ IPO saw overall subscription of 248.5 times on Friday, the last day of the share sale.

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