Newgen Software shares surge 6% after bagging international and domestic contracts

Newgen Software Ltd. shares surged as much as 6% on Thursday, September 25, after the company announced that it has bagged two orders after market closing hours on Wednesday.Firstly, the company’s UK-based subsidiary has executed a Master Service Agreement with the Belgium unit of Tata Consultancy Services (TCS). The deal is valued at €4.22 million.

Newgen will provide a modernised cloud-based enterprise records management platform for an end customer in Belgium.

Additionally, the company also received an order worth ₹21.24 crore from Kshema General Insurance for software license, implementation and annual support services.The domestic order for Newgen is for a five-year period.

Shares of Newgen Software have underperformed the benchmark Nifty IT index on both, the three-month and the 12-month timeframe.

The stock is down 19% in the last three months compared to the Nifty IT drop of 10%, while over the last 12 months, the stock is down 29%, compared to the 17% fall seen on the IT index.

Shares of Newgen Software are trading 5% higher at ₹918.8, on Thursday. The stock has halved from its 52-week high of ₹1,798.