Shares of Newgen Software Technologies Ltd gained 2.40% to ₹982.95 on Tuesday after the company announced that its material subsidiary, Newgen Software Inc. (NSI), has secured a significant contract with a US-based client. The total value of the Statement of Work (SoW) agreement for the initial three years stands at $1,930,147.
Details of the Agreement
According to a Regulation 30 disclosure under SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, the agreement marks a key step in Newgen’s international expansion strategy. The contract reinforces Newgen’s presence in the global enterprise software market, particularly in digital transformation solutions.
Key Highlights of the Deal
- Entity Awarding the Contract: A US-based client (International)
- Contract Duration: 3 years
- Promoter Group Interest: No involvement of promoters or group companies
- Related Party Transaction: Not classified as a related party transaction under the Companies Act, 2013
- Announcement Date: February 26, 2025, at 8:50 PM IST (disclosed to BSE and NSE)
Stock Performance and Market Reaction
Newgen Software’s stock rose to ₹982.95, reflecting a 2.40% gain from its previous close of ₹959.95. The stock has traded in a day range of ₹955.75 – ₹985.95. The company’s market capitalization stands at ₹138.74 billion, with a P/E ratio of 45.46 and a dividend yield of 0.41%.
Analyst Outlook
Market experts believe this deal aligns with Newgen’s global expansion strategy, strengthening its foothold in international markets. As digital transformation continues to be a focus for enterprises worldwide, Newgen’s growth in the US market could drive further business momentum.
Disclaimer
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