- By Priyanka Payal
- Mon, 04 Sep 2023 02:28 PM (IST)
- Source:JND
Nazara Technologies shares zoomed 9.44% at Rs 831.25 per share at 1:53 pm IST on Monday (September 4). The drastic jump in the stock’s shares was seen after the company said that it has approved the preferential issue of equity shares worth Rs 100 crore to Zerodha’s founders Nikhil and Nithin Kamath.
The company today said that its board has approved preferential allotment of equity shares to raise up to Rs 100 crores, subject to the receipt of approval of the shareholders of the Company and such regulatory/statutory authorities as may be applicable
Nazara Technologies Limited is an India-based, diversified gaming and sports media platform. Nazara is India's only listed gaming & esports company with majority ownership of several leading gaming & e-sports brands with a presence in India, the US and other global markets.
In an exchange filing, the company stated, “The Company is proposing to issue 14,00,560 equity shares of face value of Rs. 4/- each at a price of Rs. 714/- per equity share aggregating to INR 999,999,840/- (“Issue”) proportionately to M/s Kamath Associates & M/s NKSquared.”
Commenting on the investment in Nazara, Nikhil Kamath, Partner of Kamath Associates & NKSquared said “Gaming in India is poised for strong growth in the years to come and Nazara has built a well-diversified, profitable gaming platform well suited to take advantage of opportunities in the years ahead. We look forward to supporting Nitish and his team in achieving their growth aspirations for Nazara.”
M/s Kamath Associates and M/s NKSquared are the partnership firms represented by their partners Nikhil Kamath and Nithin Kamath.
The latest investment raises Nikhil's stake in the company to almost 3.5% from 1%.
The news was welcomed by investors as a result of which the share price of Nazara Technologies at one point traded 12.46% higher at Rs 853.80 per share in the intraday trading.
The gaming and sports media platform said that the 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, 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.