Newgen Software Shares Shine After Board Approves 1:1 Bonus Issue; Stock Up 5%

The share price of Newgen Software Technologies Ltd traded in the green on Tuesday, a day after the Board of Directors of the Company recommended a Bonus Issue and fixed January 12, 2024, as the record date for the issue of bonus shares. Today, Newgen Software shares jumped 5% higher at Rs 1332.60 per share at 9:20 am IST. Newgen Software Technologies is a small-cap multibagger stock.

The Newgen Software stock is a multi-bagger stock when it comes to the returns delivered by the company share in the last few years. In the last one year, shares of Newgen Software Technologies have gained 270.45% while in this year so far, the stock has gained 250.40%.

Newgen shares traded on a new 52 Week High value of 1369.90 on November 21, while the stock touched lower circuit Rs. 1260.25 on November 22.

In an exchange filing on Monday (November 27), the company recommended the issue of Bonus Shares in the proportion of 1:1 i.e. 1 new fully paid-up bonus equity share of Rs.10 each for every 1 existing fully paid-up equity share of Rs.10 each held by the members of the company as on the record date, subject to approval of the members through postal ballot.

Newgen said, "The Company has fixed Friday, January 12, 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.

In addition to the Bonues issue on Monday, the company also considered and approved the increase in Authorized Share Capital of the Company from Rs.110,10,00,000 to Rs. 180,10,00,000/ and consequent amendment to the Capital Clause of the Memorandum of Association of the Company, subject to the approval of Members of the Company through Postal Ballot.

In addition to the bonus issue, on Monday, the company also considered and approved the increase in Authorized Share Capital of the Company from Rs.110,10,00,000 to Rs. 180,10,00,000 and the consequent amendment to the Capital Clause of the Memorandum of Association of the Company, subject to the approval of Members of the Company through Postal Ballot.

Newgen share price performance:

Newgen Software Technologies shares have offered impressive returns to investors in the last few years. The stock's last one year, 2 years , and 3 years returns are 270.45%, 122.15% and 371.98% respectively.

At the above-mentioned share price, the company has a market cap (full) of Rs 9,337.45 crore.

In its Q2FY24 results, the company said that it witnessed a strong Q2 performance with 30% YoY revenue growth and margin expansion compared to the same quarter last year.

About Newgen

Newgen is the leading provider of a unified digital transformation platform with native process automation, content services, communication management, and AI/ML 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.