1:1 Bonus Share: Multibagger IT Stock Hits 52-Week High, Back-To-Back Upper Circuits

Ever since board of directors of mid cap IT Software company Newgen Software Technologies Ltd approved bonus issue in the proportion of 1:1 its shares have been hitting back-to-back upper circuits. Newgen Software Technologies shares also traded fresh 52-week high today. Newgen Software stock hit upper circuit on November 28 and November 29. The Board gave its nod for 1:1 bonus issue on November 27, 2023. The company fixed January 12, 2024 as the record date for the aforementioned bonus issue. Newgen Software Technologies shares offered its shareholders return of 285% year-to-date. Check details below:

Newgen Software Approves Bonus Issue, Fixes January 12 As Record Date: As per the exchange filing of Newgen Software Technologies issued on November 27, 2023, "recommended the issue of Bonus Shares in the proportion of 1:1 i.e. 1 (One) new fully paid-up bonus equity share of Rs.10/- (Rupees Ten only) each for every 1 (One) existing fully paid-up equity share of Rs.10/- (Rupees Ten only) each held by the Members of the Company as on the Record Date, subject to approval of the Members through Postal Ballot.

The Board fixed record date for reckoning eligible Members of the Company entitled to receive bonus shares on November 27, 2023. The company fixed Friday, 12th January 2024 as the Record Date, for the purpose of ascertaining the eligibility of Members entitled for issuance of Bonus Shares in the proportion of 1 (One) Equity Shares of Rs. 10/-each for every 1 (One) existing Equity Shares of Rs. 10/- each.

Newgen Software Stock Performance & Return Over Years: Its 52-week high price is quoted at Rs 1399.20 per share and 52-week low price is quoted at Rs 329.00 per share, respectively. Newgen Software shares offered its shareholders attractive returns over the years. In last 6-months, Newgen Software shares gained 126%, soared 285% year-to-date, rallied 290% in last 1-year, and offered return of 169% in last 2-years. In last 3-years, Newgen Software shares surged 416% and gained 366% in last 5-years.

Newgen Software Technologies Financials: The company for the quarter ended September 2023 announced a growth of 29.7% in its revenue from operations to Rs 293 crore as compared to Rs 226 crore in the same quarter of last year. Newgen's EBITDA jumped 59.3% YoY to Rs 57.2 crore for the quarter under review. Its margins improved 290 basis points to 19.5%. "Upon the sanction becoming effective from the appointed date i.e. 01.04.2022 as provided under the Scheme, NTSPL stands dissolved without undergoing the process of winding up," the company said.

About Newgen Software: Newgen is the leading provider of a unified digital transformation platform with native process automation, content services, and communication management capabilities. Globally, successful enterprises rely on Newgen's industry-recognized low code application platform to develop and deploy complex, content-driven, and customer-engaging business applications on the cloud. From onboarding to service requests, lending to underwriting, and for many more use cases across industries. Newgen unlocks simple with speed and agility, according to its official website.

Newgen Recognized As A 'Strong Performer' In Digital Process Automation: Recently, on November 15 Newgen Software has been identified as a 'Strong Performer' in The Forrester Wave^TM: Digital Process Automation Software (DPA), Q4 2023, authored by Craig Le Clair. According to the report, "Newgen brings its content management strengths to DPA. Content deeply integrates with process and case management, particularly in areas like contract management and onboarding. With content as a differentiator, Newgen excels in document automation with the ability to derive structured data from a variety of unstructured content sources. Reference customers indicated that they use Newgen for mission-critical applications across smaller distributed teams but want investments that better suit citizen development and wide deployments. They say that the vendor offers well-priced direct resources to help with customizations and costs less than higher-end platforms."

Disclaimer:

The stock just highlights the rally in shares after bonus share announcement and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.