Promoter Group of Newgen Software Technologies Limited have sold 10.57% stake in the company

Mr. Diwakar Nigam, Chairman & Managing Director and Mr. T S Varadarajan, Whole Time Director, (jointly referred as "Promoters") of Newgen Software Technologies Limited ("Company"), today 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, pursuant to trades on the stock exchange.

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

The aforesaid stake in the Company has been sold at an average price of approximately INR 454/- per equity share, which was at a marginal discount to the closing price of the stock on NSE on 14th June, 2021 of INR 458.3 per equity share.

The sale is subject to settlement in accordance with 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.

Commenting 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."

Upon settlement of this sale of shares, the aggregate shareholding of the promoter / promoter group in the Company shall comprise 55.16% of the paid-up equity share capital of the Company.

Shares of Newgen Software Technologies Ltd was last trading in BSE at Rs.498.75 as compared to the previous close of Rs. 458.05. The total number of shares traded during the day was 7576395 in over 9020 trades.

The stock hit an intraday high of Rs. 511.95 and intraday low of 475.05. The net turnover during the day was Rs. 3447749526.

Source : Equity Bulls

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