Newgen Software Technologies lists at 3.3% premium over issue price
The IT firm has 450-plus active customers, with clients spread over 60 countries.
By ETMarkets.com | Updated:
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NEW DELHI: Newgen Software Technologies made a decent debut on Monday, as the scrip got listed at Rs 253 on BSE, a 3.27 per cent premium over its issue price of Rs 245.
The initial public offering (IPO) of the New Delhi-headquartered IT firm was sold between January 16 and January 18 and was subscribed 8.25 times.
The company is a global provider of business process management (BPM), enterprise content management (ECM), customer communication management (CCM), document management system (DMS) and workflow and process automation.
The IT firm has 450-plus active customers, with clients spread over 60 countries. The company sells its products to banks, insurance firms, BPOs and healthcare organisations. It has offices in the US, Canada, the United Kingdom, Singapore and Dubai.
Analysts said at 5.6 times the book value and the 23 times earnings, the stock valuation looked fair compared with global peers OpenText and PegaSystems.
The high PE is justified, Emkay Global Financial Services said, as the company should command high-growth premium and strong potential of improved profitability going forward - implied PEG of 1.1 times against mid tier IT services players trading in range of 1.2-1.6 ties, the brokerge said in a note.
Shares of the company closed 3.27 per cent up at Rs 253 on BSE on Monday.
The initial public offering (IPO) of the New Delhi-headquartered IT firm was sold between January 16 and January 18 and was subscribed 8.25 times.
The company is a global provider of business process management (BPM), enterprise content management (ECM), customer communication management (CCM), document management system (DMS) and workflow and process automation.
The IT firm has 450-plus active customers, with clients spread over 60 countries. The company sells its products to banks, insurance firms, BPOs and healthcare organisations. It has offices in the US, Canada, the United Kingdom, Singapore and Dubai.
Analysts said at 5.6 times the book value and the 23 times earnings, the stock valuation looked fair compared with global peers OpenText and PegaSystems.
The high PE is justified, Emkay Global Financial Services said, as the company should command high-growth premium and strong potential of improved profitability going forward - implied PEG of 1.1 times against mid tier IT services players trading in range of 1.2-1.6 ties, the brokerge said in a note.
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Shares of the company closed 3.27 per cent up at Rs 253 on BSE on Monday.
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