Shares of Newgen Software experienced a robust 5% surge after the company’s Board of Directors gave the nod to a 1:1 bonus share issue. The announcement, made on November 27, revealed the board’s decision to recommend the issuance of one new fully paid-up bonus equity share of ₹10 each for every existing fully paid-up equity share of ₹10 each held by the members of the company as of the record date.
The company, in its exchange filing, specified, “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.”
In addition to the bonus share approval, Newgen Software’s board also greenlit an increase in the authorized share capital from Rs 110.10 crore to Rs 180.10 crore. This marks a significant development as it represents the company’s inaugural bonus share issue.
Bonus shares, known for providing additional shares to existing shareholders, maintain a fixed ratio of shares held to shares outstanding. Newgen Software has fixed the bonus issue at 1:1, meaning that the company will distribute one additional share for every share held.
As of 10:23 am, the shares continued their positive trajectory, trading at a 4.70% gain.
