Newgen Software hits new 52-week high after promoters divest 10.57% stake

ICICI Securities Limited and Jefferies India Private Limited acted as advisors to the Promoters/ Promoter Group for these transactions.

Jun 16, 2021 02:06 IST India Infoline News Service

Newgen Software
Newgen Software Technologies has announced that Diwakar Nigam, Chairman & Managing Director and T S Varadarajan, Whole Time Director, as joint promoters announced a sale of an aggregate 10.57% equity stake in the Company by the Promoters/ Promoter Group to a group of reputed institutional investors, according to trades on the stock exchange.

On the divestment, the Promoters said, “The book-building saw strong demand and interest from marquee institutional investors, both domestic and international, thus reposing their confidence and faith in Newgen’s business, its promoters and senior management team. We remain steadfast in working towards furthering the best interests of all our stakeholders.”

The aforesaid stake in the Company has been sold at an average price of approximately Rs454/- per equity share, which was at a marginal discount to the closing price of the stock on NSE on 14th June 2021 of Rs458.3 per equity share.

The sale is subject to settlement following secondary market settlement procedures of the stock exchanges/ clearing corporations. Upon settlement, the aggregate equity shareholding of the Promoter/Promoter Group in the Company will comprise 55.16% of the total paid-up equity share capital of the Company.

ICICI Securities Limited and Jefferies India Private Limited acted as advisors to the Promoters/ Promoter Group for these transactions.

At around 2.53 PM, Newgen was trading at Rs514.90 per piece up by 3.24% on Sensex. The stock has hit a new 52-week high of Rs524 per piece in the early deals. 

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