Nazara Technologies to raise Rs 250 cr via preferential allotment

Gaming and sports media platform, Nazara Technologies today announced that its board has approved the preferential allotment of its equity shares to raise Rs 250 crore.

The funds are being raised from new and existing shareholders such as Zerodha co-founder Nikhil Kamath’s NKSquared and Kamath Associates, Plutus Wealth Management, and ICICI Prudential Mutual Fund.

The fundraise is part of the company’s planned fundraising of Rs 750 crore that was announced earlier in financial year 24.

According to the regulatory filing on the Bombay Stock Exchange, the company said: “As per the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements), Regulations, 2018, these equity shares will be locked in for a period of six months from the date of receipt of trading approval.”

This infusion of fresh funds will be utilised to invest in funding requirements and growth objectives of the company, including for making strategic acquisitions and general corporate purposes.

“Our consolidated cash reserves now exceed Rs 1,500 crore. Nazara is exceptionally well-positioned to pursue both organic growth and strategic acquisitions,” said Nitish Mittersain, founder and chief executive officer of Nazara Technologies.

He further added, “We are immensely grateful for the robust support from our esteemed investors, such as Nikhil Kamath, ICICI Prudential Mutual Fund, and Plutus Wealth, who have substantially increased their investments in Nazara. This not only reinforces their belief in our strategic vision and direction but also significantly strengthens our financial standing.”

Meanwhile, the company also announced the acquisition of a 10.77 per cent equity in Kofluence Tech, an influencer marketing firm, for Rs 32.4 crore. NKSquared is an existing shareholder in Kofluence.

Nazara and Kofluence together will launch an influencer-led game discovery platform, which will transform Nazara Technologies’ game distribution by becoming a powerful network for Nazara’s gaming content on social media, said the company in the filing. Influencers can showcase the games, create buzz around new releases, and drive downloads and engagement. This model would allow Nazara to penetrate deeper into the market, reaching diverse audiences across different social media platforms.

First Published: Jan 18 2024 | 12:26 AM IST