The Newgen Software board of directors on Monday approved a free issue of 1 share for each share held.
“Recommended the issue of free shares in the proportion of 1:1, i.e. 1 (one) new fully paid free share of ₹10 each for each fully paid existing capital share of ₹10 each held by the members of the company as on the date of registration,” the company said in a statement. BSE deposit Monday.
This would be the company’s first free issue of shares.
The board of directors of Newgen Software also approved the increase in the authorized share capital of the company by ₹110.10 crores to ₹180.10 million.
Free shares are additional shares that a company grants to its existing shareholders. The basic principle of bonus shares is that they increase the number of shares issued while maintaining a fixed ratio of shares held to shares outstanding. So, a 1:1 ratio means that a shareholder will receive one share for every share they currently own as part of a 1:1 bonus. For example, if a person owns 10 shares, they will receive 10 shares. moreover. These shares are not purchased by shareholders at any price.
On Friday, the stock fell 1.5 percent to ₹1,280. Markets are closed today, Monday, November 27, due to Gurunanak Jayanti.
The stock has generated multibagger returns over the past year as well as 2023 year-to-date. It has soared 270 percent in the past year and 250 percent in 2023 to date.
Up nearly 14 percent in November so far, the stock has generated positive returns in all 11 months of the calendar year. It grew the most in May, with an increase of 27 percent, and the least in February, with an increase of 2.5 percent.
The stock reached its all-time high of ₹1,375, on November 21, 2023. It has soared more than 358% from its 52-week low of ₹299.95, minted on December 12, 2022.
For the September quarter, the company’s net profit jumped 59% year-on-year (y-o-y) to ₹48 million. At the same time, its operating revenue increased by 29.7 percent (year-on-year) to ₹293 crore against ₹226 crore in the corresponding quarter last year. The company’s EBITDA also increased by 59.3% year-on-year to ₹57.2 crore for the quarter under review and its margins increased by 290 basis points to 19.5 per cent.
About Newgen Software: Newgen is the leading provider of unified digital transformation platforms with native process automation, content services and communications management capabilities.
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