Newgen Software Technologies rallied 11 percent to Rs 411.15, the highest closing level since May 10 and formed robust bullish candle with strong volumes on the daily charts, while breaking the long downward sloping resistance trendline adjoining January 18, May 4 and July 20 this year.
The shares were disposed of at an average price of Rs 370 apiece, taking the transaction size to Rs 45.17 crore. Meanwhile, Massachusetts Institute of Technology picked up the company's shares.
The shares sold by the promoters — Diwakar Nigam, Priyadarshini Nigam and T S Varadarajan — represent 10.55 per cent stake of the company.
The company said it has witnessed robust performance with balanced growth across key geographies as it continues to get large and additional business.
ICICI Securities is bullish on Newgen Software Technologies has recommended buy rating on the stock with a target price of Rs 225 in its research report dated May 31, 2020.
The mark detection system is used to identify marks, like tick and cross marks, on document images.
The patent is valid for 20 years until March 24, 2030.
Newgen registered a whopping 109 percent on year growth in third quarter profit at Rs 18.1 crore, up from Rs 8.7 crore in same period last year.
Jefferies maintained its buy call on Newgen Software Technologies post Q3 results but raised its 12-month target price to Rs 375 from Rs 335 earlier.