Newgen Software Share Price Surges Over 7% After Subsidiary Signs Agreement With TCS NV

Shares of Newgen Software Technologies Ltd., surged over 7% on Thursday after the company announced that its subsidiary Newgen Software Technologies (UK) Ltd., has signed an agreement with TCS NV, Belgium.

The company's wholly owned subsidiary Newgen Software Technologies (UK) Ltd., has signed a five-year master services agreement with TCS NV, Belgium, according to an exchange filing on Wednesday.

The deal includes cloud hosting, software licensing, and implementation services, as per filing.

Additionally, Newgen Software Technologies has also received and accepted a purchase order from Kshema General Insurance Ltd., for its policy administration system. The aggregate commercial value of the aforesaid order is Rs 21.24 crore, according to an exchange filing.

Shares of Newgen Software Technologies rose as much as 7.12% to Rs 937.80 apiece. They pared gains to trade 4.91% higher at Rs 918.50 apiece, as of 9:50 a.m. This compares to a 0.03% decline in the NSE Nifty 50.

The stock has fallen 29.65% in the last 12 months and 46.09% year-to-date. Total traded volume so far in the day stood at 1.18 times its 30-day average. The relative strength index was at 61.86.

Out of eight analysts tracking the company, two maintain a 'buy' rating, three recommend a 'hold' and three suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 13.8%.