Newgen Software rallies 12%, hits new high after block deals

Till 09:56 am, around 7.5 million shares, representing 10.7 per cent of the company's total equity, had changed hands on the BSE, the exchange data shows

Shares of Newgen Software Technologies soared 12 per cent, hitting a new high of Rs 511.55, on the BSE in intra-day trade on Tuesday after more than 10 per cent of the company's equity changed hands on the counter. The stock of the information technology (IT) consulting & software company surpassed its previous high of Rs 464, touched on Monday.

Till 09:56 am, around 7.5 million shares, representing 10.7 per cent of the total equity of Newgen Software Technologies, had changed hands on the BSE, the exchange data shows. The names of the buyers and sellers were not ascertained immediately.

As of March 31, 2021, the promoters of Newgen Software held 65.73 per cent stake in the company. Among public shareholders, foreign portfolio investors held 14.63 per cent holding, followed by individual shareholders (9.95 per cent), mutual funds (3.74 per cent) and alternative investment funds (3.11 per cent), shareholding pattern data shows.

Newgen Software Technologies is a leading provider of digital automation platform. Globally, successful financial institutions, insurance, government, and shared services organizations rely on Newgen’s industry-recognized products and applications—to manage their processes (BPM), content (ECM), and communications (CCM)—for connected operations.

In the past one month, the stock has surged 56 per cent after the company reported a strong 48.9 per cent sequential growth in consolidated profit after tax at Rs 52.7 crore, on back of strong revenue growth, for the March quarter of FY21. Consolidated revenue from operation grew 7.8 per cent at Rs 200 crore as compared to Rs 185.5 crore in Q3FY21.

In FY’21, the company continued to witness business momentum with expanded customer engagements and addition of 67 new logos under company’s umbrella. US region is now largest revenue contributor recording a growth of 16 per cent this year, with significant customers on cloud, the management said.

The company accelerated performance in Banking & Financial Services, Government/PSU, and Insurance verticals with increased demand for digital transformation initiatives in these sectors. The company also said that it entered into a large transformation deal for a leading public sector bank in India during the quarter.