Newgen Software board on Monday approved a bonus issue of 1 share for every 1 share held.
“Recommended the issue of Bonus Shares in the proportion of 1:1 i.e. 1 (One) new fully paid-up bonus equity share of ₹10 each for every 1 existing fully paid-up equity share of ₹10 each held by the Members of the Company as on the Record Date,” the company said in a BSE filing on Monday.
This will reportedly be the company’s first bonus issue of shares.
Newgen Software board has also approved the increase in the authorized share capital of the company from ₹110.10 crore to ₹180.10 crore.
Bonus shares are additional shares that a company grants to its existing shareholders. The basic tenet 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 a shareholder will receive one share for every share she/he currently owns under a 1:1 bonus. For instance, if a person has 10 shares, she/he will receive 10 more. These shares are not purchased by the stockholders at any cost.
On Friday, the stock fell 1.5 percent to ₹1,280. Markets are closed today, Monday, November 27, on account of Gurunanak Jayanti.
The stock has given multibagger returns both in the last 1 year as well as in 2023 YTD. It soared 270 percent in the last 1 year and 250 percent in 2023 till date.
Up almost 14 percent in November so far, the stock has given positive returns in all 11 months of the calendar year. It has gained the most in May, up 27 percent and the least in February, up 2.5 percent.
For the September quarter, the company’s net profit jumped 59 percent year-on-year (YoY) to ₹48 crore. Meanwhile, its revenue from operations rose 29.7 percent (YoY) to ₹293 crore as against ₹226 crore in the corresponding quarter of last year. The company’s EBITDA also rallied 59.3 percent YoY to ₹57.2 crore for the quarter under review and its margins rose 290 basis points to 19.5 percent.
About Newgen Software: Newgen is the leading unified digital transformation platform provider with native process automation, content services, and communication management capabilities.
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Updated: 27 Nov 2023, 12:08 PM IST