Shares of Indian IT services provider Newgen Software Technologies Ltd rose as much as 8.9 per cent to Rs 266.70 on its trading debut vs IPO price of Rs 245.
Newgen's Rs 425 crore ($67 million) IPO was subscribed over 8 times. The company raised Rs 95 crore by selling new shares in IPO, while its shareholders raised the remainder.
According to analysts, steep valuations limited the gains. Angel Broking had given a “neutral” rating to the IPO saying its pre-issue P/E of 274 times its April-September annualised earnings was higher than the peers.
At 1.35 pm, the company shares were trading up by 0.35 per cent at Rs 255 on the NSE. Newgen's was the second listing of 2018 in the Indian markets after a record IPO fundraising of $11 billion last year.