Newgen Technologies surges over 8% on market debut

Newgen Technologies on its market debut surged more than 8% on stock exchanges, and clocked over Rs 266-mark compared to the IPO issue price.
 
On the BSE, at around 1012 hours, the company was trading at Rs 262.40 per piece higher by Rs 17.55 or 7.16%.
 
However, Newgen’s listing was tepid with just 3.27% premium to Rs 253 per piece as against issue price of Rs 245 per piece.
 
Newgen is included in the list of ‘B’ Group Securities on the BSE.
 
The company launched its initial public offering (IPO) on January 16, and saw over subscription of 8.25 times.
 
Under the IPO, Qualified Institutional Buyers (QIB) tapped most of the issue by subscribing 15.62 times, while non-institutional investors (NII) drove the issue by 5.52 times and that of retail individual investors (RII) by 5.18 times.
 
Price band for IPO was  fixed on lower end of Rs 240 per piece and upper end of Rs 245 per piece.
 
Newgen planned to raise about Rs 95 crore by offering 13,453,932 equity shares in its IPO issue.
 
Interestingly Newgen performed well as against analysts prediction which were mostly on neutral or avoid stance.
 
Earlier analysts at HDFC Securities said that NSTL may be subject to intellectual property infringement claims by other companies which could materially increase costs and materially harm ability to generate future revenues and profits.
 
Amarjeet S Maurya, analyst at Angel Broking, said, “The last four years historical financial records and 1HFY18 doesn’t provides confidence. Hence, we recommend Neutral rating on the issue.”
 
Not only this, Newgen has also surpassed analysts' expectations in terms of market capitalisation.
 
On the BSE, Newgen’s market cap has reached over Rs 1,800 crore, while analysts expected it to range between Rs 1,662 crore and Rs 1,696 crore.