Newgen Software, on 27 November, announced that its Board of Directors had approved a bonus issue of 1:1.

In its exchange filing, the company said, “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.”

The company’s board has also approved the increase in the authorised share capital from Rs 110.10 crore to Rs 180.10 crore.

This will be the company’s first bonus issue of shares. Bonus shares are additional shares that a company provides to its existing shareholders. The basic principle of bonus shares is that the company increases the number of shares issued while maintaining a fixed ratio of shares held to shares outstanding.

The company has fixed the bonus issue at 1:1, which means that the company will give 1 additional share of the company for every share held.

In its quarterly earnings for July-September, the company reported a 59% year-on-year (YoY) increase in its net profit to Rs 48 crore for the quarter.

The revenue from operations of the company was at Rs 293 crore for the quarter, which is a 29.7% YoY increase from Rs 226 crore reported in the same quarter last year.