27-Nov-2023
2 mins read
Newgen Software, a leader in digital transformation solutions, made a significant announcement on Monday. The company’s board has approved a bonus share issue in a 1:1 ratio, marking a pivotal moment for its shareholders.
Bonus Share Details
- 1:1 Bonus Issue: Newgen Software declared that for every share held, shareholders will receive one additional fully paid-up equity share. This bonus issue, the first of its kind for the company, involves shares valued at Rs 10 each.
- Capital Increase: Alongside this, the board has decided to augment the authorised share capital from Rs 110.10 crore to Rs 180.10 crore, demonstrating the company’s growth trajectory and financial strength.
Impact on Shareholders
- Rewarding Shareholders: Bonus shares serve as a reward to existing shareholders, effectively doubling their shareholding without additional cost. For example, a holder of 10 shares will now possess 20 shares post-issue.
Market Performance
- Recent Stock Movements: Despite a 1.5% drop to Rs 1,280 on Friday, Newgen Software has shown remarkable performance in the stock market. The markets were closed on Monday due to Gurunanak Jayanti.
- Consistent Growth: The stock has been a multibagger, soaring 270% over the last year and 250% in 2023. November alone saw a nearly 14% rise, with positive returns every month this year. The highest jump was in May (27%), while the lowest was in February (2.5%).
Financial Highlights
- Q3 Performance: Newgen’s net profit surged by 59% year-on-year to Rs 48 crore in the September quarter. Operating revenue rose by 29.7% to Rs 293 crore, up from Rs 226 crore in the corresponding quarter of the previous year. EBITDA experienced a substantial 59.3% growth, while profit margins enhanced by 290 basis points, reaching 19.5%.
About Newgen Software
A leader in digital transformation, Newgen provides a unified platform with native process automation, content services, and communication management capabilities. This bonus issue announcement underlines their commitment to growth and shareholder value.