Nazara Tech To Raise Up To Rs 250 Crore Via Preferential Issue

Nazara Technologies Ltd. will raise up to Rs 250 crore via preferential issue of shares to non-promoters, including Zerodha co-founder Nikhil Kamath’s NKSquared and Kamath Associates, ICICI Prudential Mutual Fund and Plutus Wealth Management Pvt.

The board approved the fundraise proposal, under which the company will offer 28.66 lakh shares at an issue price of Rs 872.15 apiece, according to an exchange filing on Wednesday.

The issue price indicates a discount of 6.9% to the stock's close on Wednesday. The announcement came after market hours.

"This infusion of fresh funds will be utilised to invest in funding requirements and growth objectives of the company, including for making strategic acquisitions and general corporate purposes," said a separate press release.

This concludes the planned fundraise of Rs 750 crore that was announced earlier in FY24, the company said.

NKSquared and Kamath Associates will together invest Rs 100 crore. They hold a combined 2.53% stake in Nazara Technologies, as of the quarter ending Oct. 7, according to BSE data.

London-based Plutus Wealth will deploy Rs 50 crore in the issue, while ICICI Prudential Mutual Fund—through three schemes—will invest Rs 75 crore. They hold 6.14% and 4.48% stake, respectively.

Kolkata-based investment firm Chartered Finance and Leasing Ltd. will invest Rs 25 crore.

These equity shares will be locked in for a period of six months from the date of receipt of trading approval, the company said.

Nazara Tech will also acquire 10.77% stake in influencer platform Kofluence Tech Pvt. for Rs 32.41 crore in an all-stock deal. The agency counts ICICI Bank Ltd., Domino's Pizza and ITC Ltd. among its clients.

The partnership aims to launch an influencer-driven game discovery platform, the company said.

"This initiative will utilise influencers to promote Nazara's games on various social media platforms. Influencers can tailor their content to match their audience's preferences, creating buzz around new releases and driving downloads," the statement said.

The company's new game publishing initiative, Nazara Publishing, will particularly benefit from it, said Nitish Mittersain, joint managing director and chief executive officer.

The Mumbai-based gaming company will convene an extraordinary general meeting of shareholders on Feb. 12 for seeking necessary approval for the fundraise and acquisition.

Shares of Nazara Technologies closed 3.10% lower at Rs 937 apiece, as compared with a 2.23% decline in the BSE Sensex.