HSBC Private Equity Asia to invest in Newgen Software

Mumbai, Jan 7 (UNI) New Delhi-based Newgen Software Technologies today announced that a Rs 30 crore investment for a minority stake in the company will be made by a wholly owned subsidiary of the HSBC Asian Ventures Fund Limited advised by HSBC Private Equity Technology (Asia) Limited.

The funds raised will be used to facilitate Newgen's expansion of sales and marketing activities in new markets across the globe.

Newgen MD and CEO Diwakar Nigam said in a release, ''Our company has been growing at the rate of 50-60 per cent in products and solutions business over the last three years. We have been working with more than 30 large BFSI customers on a continual basis. With HSBC on board, we look forward to replicating our success in new markets and maximizing shareholder value through our highly scalable product-based business model.'' James Savage, Investment Director of HSBC Private Equity Asia, said, ''Newgen is one of a few sizeable software product companies in India, which has established a blue chip client base. Newgen is able to deliver outstanding value to its customers based on the intellectual property it has developed.

The worldwide market for business process management and content management solutions is expected to experience strong growth over the medium term. We believe that Newgen is well positioned to benefit from this opportunity. HSBC Private Equity Asia will assist Newgen in its business development through our extensive network and reach in overseas markets.'' ''India represents a core market for private equity investments for our funds. We will continue to look for other attractive investment opportunities here,'' he added.

UNI AR MAZ VKG1932