The shares of Newgen Software Technologies Ltd. rose to a record high on Monday after the company said its board would consider issuing free shares.
The board of directors will meet on November 27 to consider the proposal to issue bonus shares, according to a stock exchange filing.
The company’s shares were stuck in the 5% upper circuit at Rs 1,312.55 apiece, the highest since its listing on January 26, 2018. NSE Nifty 50 was 0.05% lower, as of 9:53 am.
It’s up 264% this year. Total trading volume so far on the day was 0.5 times the 30-day average. The relative strength index stood at 73, implying that the stock may be overbought.
Five of the six analysts covering the company maintain a “buy” rating, while one recommends a “hold” rating, according to Bloomberg data. The average of analysts’ 12-month price targets implies a potential downside of 4.3%.