Newgen Software Announces 1:1 Bonus Issue and Authorized Capital Increase

Newgen Software Announces 1:1 Bonus Issue and Authorized Capital Increase

VoM News Desk | November 27, 2023 | 01:29 PM IST | Breaking News | Follow on Google News

Newgen Software Announces 1:1 Bonus Issue and Authorized Capital Increase

Newgen Software Announces 1:1 Bonus Issue and Authorized Capital Increase

Newgen Software has announced its first-ever bonus share issue, with a generous 1:1 ratio, effectively doubling the number of shares held by each shareholder. This means for every existing share owned, shareholders will receive one additional share at no extra cost. This move is a significant milestone for the company and is expected to enhance shareholder value.

Enhancement of Authorized Share Capital

Alongside the bonus issue, Newgen Software’s board has also approved an increase in the authorized share capital from ₹110.10 crore to ₹180.10 crore. This expansion in the capital base is aimed at supporting the company’s growth initiatives and strategic objectives.

Market Performance and Financial Growth

Despite a recent 1.5% decline in stock price, Newgen Software has been a strong performer in the market. The company’s shares have delivered multibagger returns over the past year, with a remarkable 270% increase in the last 12 months and a 250% surge year-to-date in 2023. The stock reached a record high of ₹1,375 on November 21, 2023, marking a significant growth from its 52-week low of ₹299.95 on December 12, 2022.

Quarterly Financial Highlights

For the September quarter, Newgen Software reported a 59% year-on-year increase in net profit, totaling ₹48 crore. Revenue from operations also saw a significant rise of 29.7% year-on-year to ₹293 crore. The company’s EBITDA grew by 59.3%, with margins expanding by 290 basis points to 19.5%.

About Newgen Software

Newgen Software is a leader in providing unified digital transformation platforms, known for its comprehensive capabilities in process automation, content services, and communication management. This bonus issue and capital enhancement reflect the company’s commitment to growth and delivering value to its shareholders.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.