In a significant development, Nazara Technologies Limited has received approval from its board to raise ₹410 crores through a preferential issue of equity shares. The Rekha Jhunjhunwala-backed company is set to issue 57,42,296 equity shares with a face value of ₹4 each at a price of ₹714 per equity share. SBI Mutual Fund will be the recipient of this preferential issue, with the investment being spread across three schemes: SBI Multi-cap Fund, SBI Magnum Global Fund, and SBI Technology Opportunities Fund.
Nitish Mittersain, the CEO of Nazara Technologies, expressed his enthusiasm about this funding milestone, stating, “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.”
The proposed issuance of equity shares is subject to lock-in requirements as per the provisions of Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.
These newly acquired funds will play a pivotal role in supporting Nazara Technologies’ growth objectives. The company plans to utilize the capital infusion for various purposes, including strategic acquisitions and investments in other companies, gaming funds, and entities. Additionally, the funds will be directed toward meeting the growth and funding needs of Nazara Technologies’ subsidiaries, associates, and joint ventures. Capital expenditures, working capital requirements, and potential debt obligations of the company and its subsidiaries will also be addressed as part of this funding strategy. The issuance of equity shares is subject to approval by the company’s shareholders and the relevant regulatory authorities.