- By Vaamanaa Sethi
- Thu, 07 Sep 2023 01:37 PM (IST)
- Source:JND
Nazara Technologies announced on September 7 that it has received board approval to raise at least Rs 410 crore from SBI Mutual Fund via issuance of equity shares. Axis capital were advisors to the company for this transaction.
The gaming and sports media platform is proposing to issue 57,42,296 equity shares at a price of Rs. 714 per share aggregating to Rs 4,099,999,344 to SBI Mutual Fund, by way of preferential issue on private placement basis.
This move came after the company looks to build a warchest for potential acquisitions to grow all its businesses. The funds will be invested via three schemes of SBI Mutual Fund namely SBI Multicap Fund, SBI Magnum Global Fund and SBI Technology Opportunities Fund, the company said in its exchange filing.
It further said that the proposed Issue of equity shares shall be subject to lock-in as per the requirement of Chapter V of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements), Regulations, 2018.
“This infusion of fresh funds will be utilized to invest in funding requirements and growth objectives of the Company including for making strategic acquisitions and investments in various companies / body corporates / entities / gaming funds, meeting growth and funding requirements based on the business opportunities across the subsidiaries / associates / joint venture of the Company, as applicable, through investment in subsidiaries / associates / joint venture of the Company, meeting capital expenditures and working capital requirements and repayment of debt obligations of the company and its subsidiaries from time to time if any,” the company said.
SBI Multicap Fund will be investing about Rs 200 crore, while SBI Magnum Global Fund is investing about Rs 120 crore and SBI Technology Opportunities Fund is investing the remaining Rs 90 crore, as per filing.
“Making India the gaming nation of the world has been a long-pursued dream for all of us at Nazara. India’s largest domestic mutual fund investing in Nazara is an important milestone for us in this two decade long journey. We are very excited to welcome SBI Mutual Fund as our investor,” said Nitish Mittersain, CEO of Nazara Technologies.
Also read: Income Tax Department Sends Intimation Notices To 22,000 Taxpayers Over Mismatch of ITRs
The fundraise also comes after Zerodha-founder Nikhil Kamath was allocated over shares worth Rs 100 crore. Nazara Technologies is also waiting for shareholder approval to raise up Rs 750 crore.
"Highly respected investors backing Nazara makes me very proud of what we have built and I would like to extend a hearty welcome to SBI Mutual Fund,” said Vikash Mittersain, Chairman & MD of Nazara Technologies.
