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Nazara Technologies Plans to Secure Rs 250 Crore Through Preferential Allotment

Digital gaming and esports company Nazara Technologies has successfully raised Rs 250 crore from various investors in its third tranche of fundraising, as part of the total Rs 750 crore fundraising plan announced in July 2023. The investors in this round include Kamath Associates & NKSquared, backed by Zerodha’s co-founders, ICICI Securities, Plutus Wealth Management, Chartered Finance, and others.

The Board of Nazara Technologies has approved the issuance of 28,66,474 equity shares at an issue price of Rs 876.15 each to raise the targeted Rs 250 crore. Notably, this move comes as Nazara Technologies strategically plans to enhance its financial position and support its growth objectives, including potential acquisitions and investments in various corporate entities.

In this round of fundraising, Kamath Associates and NKSquared, co-founded by Zerodha’s Nikhil Kamath, contributed Rs 100 crore. ICICI Securities invested Rs 65 crore, while Plutus Wealth Management and Chartered Finance added Rs 50 crore and Rs 25 crore, respectively. With these investments, the stake of Zerodha co-founder Nikhil Kamath’s two firms increased to 3.93%, and Plutus Wealth Management now holds a 6.63% stake in Nazara Technologies.



Nazara Technologies Plans INR 250 Cr Fundraise Through Preferential Issue,  Kamath Brothers to Invest INR 100 Cr - PUNE.NEWS
Nazara Technologies Plans INR 250 Cr Fundraise Through Preferential Issue, Kamath Brothers to Invest INR 100 Cr

The fresh capital infusion will be instrumental in meeting the funding requirements and growth objectives of Nazara Technologies. The company plans to utilize the funds for strategic acquisitions and investments, aligning with its corporate goals.

This fundraising effort marks the completion of Nazara Technologies’ Rs 750 crore fundraising plan announced in the previous year. In the first tranche, the Kamath brothers had invested Rs 100 crore, followed by a substantial contribution of Rs 410 crore from SBI Mutual Fund.

As of now, Nazara Technologies is trading at Rs 936, and it recently reached its 52-week high of Rs 989.4. In the second quarter of the fiscal year 2023-24, the company reported a growth of 16.83% in revenue from operations, amounting to Rs 297.24 crore. Additionally, the firm’s profits increased by 7.86%, reaching Rs 22.5 crore in the quarter ending September 2023.

Nazara Technologies continues to make strides in the digital gaming and esports sector, leveraging strategic investments to further its market position and drive growth in the rapidly evolving industry. With this latest round of funding, the company is well-positioned to pursue its expansion plans and capitalize on emerging opportunities in the gaming and esports landscape.

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