September 4, 2023
Nazara Technologies, the prominent name in the Indian gaming industry, is making waves yet again with its strategic financial move. The company's board has given the green light to issue shares worth a whopping Rs 100 crore to none other than Nikhil Kamath, one of the founders of Zerodha, a leading name in the world of online stock trading. This news, which came out on September 4th, has made Nazara Technologies' stock go way up, increasing by more than 11 percent.
In a regulatory filing, Nazara Technologies disclosed, "We wish to inform you that the board … considered and approved Issuance of up to 14,00,560 shares of the company, for cash, at an issue price of Rs 714 per Equity Share aggregating to an amount of Rs 99,99,99,840 to M/s Kamath Associates (Partnership firm represented by its partners Nikhil Kamath and Nithin Kamath) and M/s NKSquared (Partnership firm represented by its partners Nikhil Kamath and Nithin Kamath)."
This big investment means that Nikhil Kamath now owns a much larger piece of Nazara Technologies, going from having just a small part (1 percent) to having about 3.5 percent of it. In an interview with CNBC TV-18, Nikhil Kamath hinted at the possibility of further increasing his stake in the company in the future.
The enthusiastic response from investors was palpable as the stock traded at Rs 846 on the National Stock Exchange, a remarkable 11.38 percent increase from the previous closing price, at 10.48 am.
Nitish Mittersain, CEO of Nazara Technologies, expressed his happiness at this strategic move, saying, "Nikhil Kamath symbolizes success in India's tech arena, and this fund raise holds immense value for us at Nazara as we continue to build a diversified gaming platform in India. Beyond the funds raised, his investment stands as a resounding vote of confidence in Nazara."
The shares issued as part of this transaction will be locked in for a period of six months from the date of issue. The injected funds will be instrumental in fueling Nazara Technologies' growth objectives, including strategic acquisitions, as well as catering to its growth and funding requirements.
Nikhil Kamath, speaking about the investment, emphasized the potential of the gaming industry in India, stating, "Gaming in India was poised for strong growth in the years to come, and Nazara had built a well-diversified, profitable gaming platform well suited to take advantage of opportunities in the years ahead."
Notably, this is the second capital raise for Nazara Technologies in the span of just two months. In July, the company took the decision to raise funds through the issuance of equity shares, with the board of directors approving an increase in authorized share capital from Rs 30 crore to Rs 50 crore.
It's clear that Nazara Technologies is gearing up for substantial growth in the booming gaming industry, and with the backing of investors like Nikhil Kamath, their journey to the top seems even more promising.
Disclaimer: The views and investment tips expressed by experts on Youblog.live are their own and not those of the website or its management. Youblog.live advises users to check with certified experts before taking any investment decisions.