Nazara Technologies to raise Rs 100 crore from Nikhil Kamath, stock zooms

September 4, 2023

The board of directors of Nazara Technologies approved a share issuance worth Rs 100 crore to the founders of Zerodha, Nikhil and Nithin Kamath, the game company announced on September 4, causing the shares to rise. leap.
“We would like to inform you that the Board of Directors… has reviewed and approved the issuance of up to 14,00,560 shares of the Company, in cash, at an issue price of Rs 714 per equity share. owner, total amount is Rs 99,99.99,840 to M/s Kamath Associates (partner company represented by associates Nikhil Kamath and Nithin Kamath) and M/s NKSquared (partner company represented by associates Nikhil Kamath and Nithin Kamath) represented by associates Nikhil Kamath and Nithin Kamath),” the company said in a regulatory filing.
The news got investors excited, sending the share price up more than 5% to almost Rs 800 shortly after the opening bell. These capital shares will be frozen within 6 months from the date of issuance.
The new funds will be used to invest in the company’s financial needs and growth goals, including making strategic acquisitions and investments, in response to growing demand, Nazara Tech said. chief and finance. “Nikhil Kamath represents success in the Indian tech sector and this fundraising is of immense value to us at Nazara as we continue to build a diverse gaming platform in India. In addition to the money raised, his investment is a resounding vote of confidence for Nazara,” said Nitish Mittersain, CEO of Nazara Technologies.
Nikhil Kamath, Partner at Kamath Associates & NKSquared, said gaming in India is poised for strong growth in the coming years, and Nazara has built a diversified and profitable gaming platform that is a great fit. appropriate to take advantage of opportunities in the years to come.
Kamath currently owns about 1% of the company’s capital. With this investment, he will now own about 3.5% of the company. Speaking to CNBC TV-18, he said he plans to increase his holdings further in the future.
This is the second time in two months the company has chosen to raise capital. In July, the company decided to raise capital through a share issue. The Board of Directors approved the increase of authorized share capital from Rs 30 billion to Rs 50 billion.