Nikhil Kamath invests Rs. 100cr in Nazara Technologies, stock skyrockets
Nazara Technologies, a diversified gaming and sports media platform, has raised Rs. 100 crore from Zerodha co-founder Nikhil Kamath. The funds will be used for strategic acquisitions, investments, and growth objectives, said the company in a BSE filing. The news boosted Nazara Technologies's share price by over 11.5% to nearly Rs. 846, at the time of writing.
Shares will be offered for Rs. 714 per equity
The online gaming company will issue a little over 14 lakh equity shares with a face value of Rs. 4 each to the companies associated with Nikhil and Nithin Kamath. These shares, valued at nearly Rs. 100 crore, will be allotted to two entities: M/s Kamath Associates and M/s NKSquared, a partnership firm represented by Nikhil and Nithin. These shares will be offered at a price of Rs. 714 per stock, which is 7.3% lower than Friday's closing price.
Nikhil bets on India's gaming growth
Nikhil said that gaming in India is poised for strong growth in the years to come, and Nazara Technologies has built a well-diversified, profitable gaming platform well-suited to take advantage of opportunities in the years ahead. With this investment, Nikhil will own about 3.5% of the company and plans to raise his stake further in the future.
Expanding gaming presence globally
Nazara Technologies operates within India and spans various emerging and established global markets, including Africa and North America. The company provides a range of services, including eSports, interactive gaming, ad-tech, and gamified early learning ecosystems, with standout titles like World Cricket in their portfolio. This is the second time in two months that Nazara Technologies has opted to raise capital.
Impressive Q1 results fuel expansion plans
Nazara Technologies's Q1 FY24 consolidated net profit jumped 69.6% to Rs. 19.5 crore on a 14% increase in net sales to Rs. 223.1 crore compared to the same quarter last year. The fresh funds will be used for strategic acquisitions and investments in various companies, body corporates, and entities. The equity shares will be locked in for six months from the date of issue, as per SEBI regulations.
