An IT stock surged 5 percent after securing a Rs.32.45 crore order from the Reserve Bank of India (RBI) for the maintenance of its Regulatory Application Management System (RAMS). This significant order is expected to boost the company’s revenue and enhance its position in the financial services sector.
Share price movement
During Friday’s trading session, Newgen Software Technologies Ltd shares hit an intra-day high of Rs.1,184.00 per share, up 4.77 percent from the previous close of Rs.1,130.05 apiece. However, the shares have since retreated and are currently trading at Rs.1,162.00 per share.
Rationale for the Rise
Newgen Software Technologies’ shares jumped in early trading on November 29 after receiving an order from the Reserve Bank of India (RBI) to implement and maintain the Regulatory Application Management System (RAMS).
The contract is valued at Rs 32.45 crore, including 18 percent GST, and will be executed over a span of seven years. The project will involve significant integration work, potentially upgrading or developing software solutions tailored to the specific regulatory needs of RBI. By leveraging automation and digitization, RAMS will streamline the RBI’s workflow, improving efficiency and reducing manual processes.
Business Verticals
Newgen Software continues to prioritize banking and financial services as its core vertical, with increasing traction in the insurance and government sectors. Recent significant wins include a Rs.25 crore project from a major insurance company in India and a USD 1.5 million order from a leading financial institution in the US, highlighting the company’s expanding presence in diverse industries.
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Key Offerings
Newgen’s key offerings include the NewgenONE Platform, a low-code solution designed for end-to-end business process automation, ensuring quick and secure application development.
The company also provides Process Automation tools that integrate robotic process automation (RPA) and dynamic case management to optimize workflows. Additionally, AI Integration within the platform leverages generative AI to enhance productivity and streamline operations across various business functions.
Financial Performance
In its recent financial updates, Newgen Software Technologies Ltd reported revenue of Rs.361 crore in Q2 FY25, increasing 23.2 percent from Rs.293 crore in Q2 FY24. The net profit also inclined 46 percent to Rs.70 crore, compared to Rs.48 crore in the same period.
Shareholding Pattern
As per the September 2024 shareholding pattern, the promoters of Newgen Software Technologies Ltd hold a 54.30 percent stake, while Foreign Institutional Investors hold a 19.97 percent stake. Domestic Institutional Investors and Retail investors hold a stake of 8.93 percent and 16.52 percent, respectively in the company.
Company Profile
Established in 1992 and headquartered in New Delhi, India, Newgen Software Technologies Limited is a prominent provider of digital transformation solutions, with expertise in Enterprise Content Management (ECM), Business Process Management (BPM), and Customer Communication Management (CCM).
Written by – Siddesh S Raskar
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