Newgen Software Shares At Record High On Bonus Issue Plans

Shares of Newgen Software Technologies Ltd. hit a record high on Monday after the company said its board will consider issuing free shares.

The board of directors will meet on Nov. 27 to consider the proposal of issuance of bonus shares, according to an exchange filing.

Shares of the company was locked in 5% upper-circuit at Rs 1,312.55 apiece, the highest level since its listing in Jan. 26, 2018. NSE Nifty 50 was 0.05% lower, as of 9:53 a.m.

It has risen 264% on a year-to-date basis. The total traded volume so far in the day stood at 0.5 time its 30-day average. The relative strength index was at 73, implying that the stock maybe overbought.

Five out of the six analysts tracking the company maintain a 'buy' rating, one recommends a 'hold', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 4.3%.