In a strategic move, Nikhil Kamath, co-founder of Zerodha, a prominent stock brokerage firm, is reportedly planning to increase his stake in Nazara Technologies, a leading mobile games publisher. Currently holding approximately 1% of Nazara's stake, Nikhil Kamath aims to boost his ownership to 3.5%, according to reports from CNBC TV 18. This development comes as Nazara Technologies prepares for a crucial shareholders' meeting on September 4, during which the board will discuss the possibility of raising capital by issuing equity shares on a preferential basis.
Nazara's Capital-Raising Endeavors:
In a bid to secure additional capital for growth and expansion, Nazara Technologies had earlier received approval from its board of directors to raise Rs 750 crore through the issuance of equity shares and other equity-linked instruments or securities. This move underscores Nazara's commitment to scaling its operations and consolidating its position in the gaming and sports media industry.
Strategic Investments and Expansions:
Nazara Technologies has been actively pursuing strategic investments and partnerships to strengthen its presence in the gaming and sports media sector. Notably, the company invested approximately Rs 4.15 crore ($500,000) in Snax Games Ltd, an Israeli game developer, through its subsidiary, Nazara PTE Ltd. This partnership granted Nazara exclusive publishing rights for Snax Games' titles in the Indian subcontinent and the Middle East for a five-year period.
In March of this year, Nazara Technologies acquired Pro Football Network, a digital platform dedicated to tracking the National Football League (NFL) in the United States, for $1.82 million. This acquisition resulted in Nazara's subsidiary, Absolute Sports, gaining a significant 73.3% ownership stake in the company.
Continuing its expansion efforts, Nazara further increased its majority stake in mobile games developer Nextwave Multimedia in May, raising its ownership from 52.38% to 71.88%. These strategic investments and acquisitions reflect Nazara's commitment to diversifying its portfolio and capitalizing on the booming gaming industry.
Stock Performance:
As of the latest available data, Nazara Technologies' share price stood at Rs 778.50, demonstrating a remarkable growth of nearly 50% over the past six months. This surge in share price highlights the growing confidence in Nazara's business prospects and its strategic initiatives.
Nikhil Kamath's decision to increase his stake in Nazara Technologies aligns with the company's ambitions for growth and expansion. As Nazara continues to make strategic investments, forge partnerships, and diversify its portfolio, it solidifies its position as a key player in the mobile gaming and sports media industry. The upcoming shareholders' meeting and the potential capital infusion indicate an exciting phase of development for Nazara Technologies, and investors and industry enthusiasts will be closely monitoring its journey.
