homeearnings NewsNewgen Software rallies after block deal; CMD says no plan to reduce promoter stake further
Newgen Software rallies after block deal; CMD says no plan to reduce promoter stake further
The Newgen Software stock is up 230 percent in the last one year. It moved 9 percent higher on Tuesday to hit a fresh high, after over 10 percent of the equity changed hands in a block deal. Diwakar Nigam, CMD, Newgen Software Technologies, discussed this.
The Newgen Software stock is up 230 percent in the last one year. It moved 9 percent higher on Tuesday to hit a fresh high, after over 10 percent of the equity changed hands in a block deal. Diwakar Nigam, CMD, Newgen Software Technologies, discussed this.
Promoter stake sale has been in the works for quite some time, he said.
“Promoter group had 67 percent of holding and 7-8 percent is with the employees, plus about 20 percent is with 4-5 investors. That leaves only 5-7 percent of liquidity in the market. So, investment bankers have been telling us that for the well-being of the stock price, it may be worthwhile to go for 10-12 percent more liquidity creation. After that, we will have 56-57 percent holding,” he explained.
“We are not planning to reduce our stakes any further. This is more than enough to fulfil our needs as well as to do some philanthropy which we have been doing with our dividends,” he added.
The company met 20-25 good investors over the last month, who would like to invest in the company. “Some of them have taken their stakes now and some will come in the future. The company is in very good footing - the results and the share prices are showing that,” he shared.
In terms of growth guidance, he said, “Our annuity revenues are increasing at a faster pace because we are reducing the revenues in licenses which are bulky. The value of the company has gone up. Our revenues from US are growing faster. Subscription revenues are going up in all the matured economies. We are doing well. We should be able to meet our FY22 growth guidance of 15 percent.”
For the full interview, watch the accompanying video.
(Edited by : Dipika)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
BJP is planning to ban RSS, says Shiv Sena (UBT) chief Uddhav Thackeray
May 18, 2024 8:01 PM
Punjab Lok Sabha elections: Complete list of Congress candidates
May 18, 2024 4:08 PM
Punjab Lok Sabha elections: Check full list of AAP candidates and constituencies
May 18, 2024 12:59 PM
PM Modi, Rahul Gandhi election rallies in Delhi today: Here are the routes to avoid
May 18, 2024 11:28 AM