INDIA BUSINESS WORLD - JANUARY 1^st - JANUARY 15^th - 2008

HSBC ARM PICKS UP STAKE IN NEWGEN FOR RS 30 CRORE

New Delhi-based software product firm Newgen Software Technologies has announced that a wholly-owned subsidiary of HSBC Asian Ventures Fund has picked up a minority stake in the company for Rs 30 crore. Newgen said the funds raised will be used to facilitate the expansion of its sales and marketing activities in new markets across the globe.

"With HSBC on board, we look forward to replicating our success in new markets and maximising shareholder value through our highly scalable product-based business model," said Newgen MD and CEO Diwakar Nigam.

According to HSBC Private Equity Asia investment director James Savage, "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."

Newgen provides enterprise solutions for business process management and content management in BFSI, business process outsourcing (BPO), and the telecom and government segments. The company operates in nations such as India, Middle East, Africa and South East Asia, and is now looking at new markets in North America, Latin America, Western & Central Europe and Central Asia.