ADIA, White Oak Have Bought Minority Stakes In Newgen Software


Abu Dhabi Investment Authority, the sovereign wealth fund of the Gulf emirate, and an Indian hedge fund have bought minority stakes in Newgen Software Technologies Ltd. ADIA invested Rs 75 crore ($10.2 million), translating into a stake of around 2.36%. Two Indian hedge funds managed by former Goldman Sachs executive Prashant Khemka’s White Oak Capital picked up shares worth Rs 62.37 crore.

Three promoters of Newgen Software Technologies Ltd on June 15, offloaded shares worth over Rs 335 crore of the firm through open market transactions. The shares sold by the promoters — Diwakar Nigam, Priyadarshini Nigam, and T S Varadarajan — represent a 10.55 percent stake of the company.

Together, they sold 73.81 lakh shares of the firm at an average price of Rs 454 a unit, block deal data on the BSE showed. Diwakar Nigam offloaded shares worth Rs 126.47 crore, Priyadarshini Nigam Rs 63.51 crore, and T S Varadarajan Rs 145.09 crore. As per shareholding data for March 2021 quarter, Diwakar Nigam, Priyadarshini Nigam, and T S Varadarajan held 26.41 percent, 11.39 percent, and 21.46 percent stake, respectively in the company.

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ADIA acquired shares worth Rs 75 crore while White Oak Capital picked up shares worth Rs 130 crore through three entities. White Oak Capital is an investment fund set up by former Goldman Sachs asset manager Prashant Khemka. Funds managed by Societe Generale and Morgan Stanley Asia Singapore also picked up stakes worth Rs 10 crore each.

“The book building saw strong demand and interest from marquee institutional investors, both domestic and international, thus reposing their confidence and faith in Newgen’s business, its promoters and senior management team. We remain steadfast in working towards furthering the best interests of all our stakeholders,” the promoter family said in a statement.

Newgen Software reported sales of Rs 610 crore for the financial year ended March 2021 with profits of Rs 117.5 crore. It provides low code digital automation which helps companies manage their business processes, content, and communications. The firm went public in 2018.



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