Newgen Software Technologies IPO; all you need to know

A Delhi-based IT company, Newgen Software Technologies, will be commencing its initial public offering (IPO) tomorrow. The company's IPO issue will be available for subscription till January 18, 2018.
 
Data on NSE states that Newgen will be offering 13,453,932 equity shares to raise about Rs 95 crore.
 
Price band for the issue is fixed on lower end of Rs 240 per piece and upper end of Rs 245 per piece.
 
Promoters of the company are offering 4% of their share capital in this IPO.
 
50% of the IPO is occupied for qualified institutional buyer (QIB), while 35% has been kept for retail individual investors (RII), and the remaining 15% allotted to non-institutional investors (NII).
 
Companies like ICICI Securities Limited, Jefferies India Private Limited and IDFC Bank Limited are acting as book running lead managers (BLRM) for the issue.
 
Proceeds from the issue will be utilised to purchase and furnish office premises near Noida-Greater expressway, Uttar Pradesh and general corporate purposes.
 
Here's what you need to know about the company.
 
Newgen Software Technologies Limited is an IT company, incorporated in 1992 with headquarters in New Delhi.
 
The company is a global provider of Business Process Management (BPM), Enterprise Content Management (ECM), Customer Communication Management (CCM), Document Management System (DMS), Workflow and Process Automation. Some of the biggest clients of the company are TCS, HP and HCL.
 
Currently, it sells its products across 60 countries. The company’s clients are spread across banks, insurance firms, BPOs and healthcare organizations. It has offices in the US, Canada, the United Kingdom, Singapore, and Dubai.
 
As of June 30, 2017, the company has more than 300 channel partners globally. They sell their software through licenses and subscriptions.
 
Till June 2017, the company had over 450 active customers (invoiced in the last 12 months) in over 60 countries.
 
Some of the key active customers include Trust Company of America, Mercantil Bank, ICICI Bank, Trafigura, Bajaj Electricals, United Arab Bank, National Commercial Bank Jamaica, Axis Bank, Yes Bank, Kotak Mahindra Bank, Bank Islam Brunei Darussalam, Philippines Resource Saving Bank, ICICI Prudential Life Insurance, Reliance General Insurance, Max Life Insurance, Strides Shasun and Shriram Transport Finance.
 
NSTL was able to report only single digit bottom-line CAGR (compounded annual growth rate) of ~8% despite a top-line CAGR ~20% over FY13-17, due to lack of stability in operating margins.
 
During 1HFY18, the company has reported very low margin and profitability (c) working capital days are very high.