Majesco advances after entering into agreement with Glemham

Majesco rose 2.98% to Rs 484.05 at 09:22 IST on BSE after the company announced that it has entered into an agreement with Glemham, a UK based managing general agent, to create a new cloud based bureau processing business.

The announcement was made after market hours yesterday, 22 September 2016.

Meanwhile, the S&P BSE Sensex was down 25.68 points or 0.09% at 28,747.45

On BSE, so far 16,000 shares were traded in the counter as against average daily volume of 26,338 shares in the past one quarter. The stock hit a high of Rs 488 and a low of Rs 476 so far during the day. The stock had hit a record high of Rs 789 on 12 January 2016. The stock had hit a record low of Rs 303 on 29 September 2015.

The small-cap company has equity capital of Rs 11.62 crore. Face value per share is Rs 5.

Majesco announced that it has entered into an agreement with Glemham, a UK based managing general agent (MGA), to create a new cloud based bureau processing business using Majesco CloudInsurer to reduce the cost of transacting General Insurance in the UK market. Majesco CloudInsurer platform will be used to initially provide commercial lines insurance to both the broker and the small medium enterprise (SME) markets. Based on the Majesco CloudInsurer platform, the business will deliver Net Rated products to all distribution channels, supporting full cycle processing across the Internet. Capacity is being provided by a number of different underwriters. Processing expense ratio in the business is expected to be around 5% versus the typical 14%-18% seen across the market.

Majesco CloudInsurer provides a core insurance software platform leveraging Majesco core solutions with a digital, multi-channel platform leveraging Majesco.

Majesco's net profit fell 64.96% to Rs 0.89 crore on 10.47% rise in total income to Rs 8.97 crore in Q1 June 2016 over Q4 March 2016.

Majesco enables insurance business transformation for about 150 insurance customers worldwide by providing solutions which include software, consulting and services.

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