The board of directors at Nazara Technologies has given the green light to issue shares worth Rs 100 crore to the founders of Zerodha, Nikhil, and Nithin Kamath. This move has resulted in a 10.53% surge in Nazara's stock price, reaching a 52-week high of Rs 839.15.
Details of the Share Issue
According to regulatory filings by Nazara, the company intends to issue 14,00,560 equity shares with a face value of Rs 4 each at a price of Rs 714 per equity share, aggregating to Rs 99,99,99,840. These shares will be issued proportionately to M/s Kamath Associates & M/s NKSquared. As per SEBI regulations, the equity shares will be locked in for a period of 6 months from the date of the issue.
Utilization of Fresh Funds
Nazara Technologies plans to utilize the funds raised through this share issuance to support various growth objectives, including strategic acquisitions and investments in companies that align with its growth and funding requirements. This move aligns with the gaming company's strategy to build a diversified gaming platform in India.
Nikhil Kamath's Investment
Nikhil Kamath's decision to invest in Nazara Technologies signifies a significant development in India's tech industry. His investment not only brings substantial funds to Nazara but also serves as a vote of confidence in the company's vision and potential. Nitish Mittersain, CEO of Nazara Technologies, expressed his enthusiasm for the investment, emphasizing its value to the company as they continue to expand their gaming platform.
Previous Approvals and Fundraising Initiatives
This announcement follows Nikhil Kamath's earlier plan to increase his stake in Nazara Technologies from 1% to 3.5%. Additionally, in July, the board of directors had approved a move to raise Rs 750 crore through the issuance of equity shares and other equity-linked instruments or securities. The Indian gaming industry is poised for substantial growth, and Nazara has strategically positioned itself to capitalize on these opportunities.
Nikhil Kamath, Partner at Kamath Associates & NKSquared, expressed his optimism about the future of gaming in India. He commended Nazara Technologies for building a profitable and diversified gaming platform, well-suited to leverage the forthcoming growth prospects in the Indian gaming landscape.
This investment and share issuance mark significant milestones for both Nazara Technologies and Zerodha's founders, reinforcing their commitment to India's burgeoning gaming industry.
Stay Informed
Stay tuned for further updates on this development and its impact on the Indian Startup business
