Nazara Tech stock up 10% after preferential issue to Zerodha founder Nikhil Kamath
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Nazara Technologies' stock is up 10 per cent after the company announced a preferential issue of shares to Zerodha co-founder Nikhil Kamath.
Nazara stock was up 10 per cent at Rs 835 on BSE on Monday.
Nazara Technologies Limited, an India-based, diversified gaming and sports media platform today announced 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.
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 Rs 999,999,840 proportionately to Kamath Associates and NKSquared.
As per the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements), Regulations, 2018, these equity shares will be locked in for a period of 6 months from the date of issue.
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, 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.
Nitish Mittersain, CEO of Nazara Technologies, remarked: "Nikhil Kamath symbolizes success in India's tech arena, and this fund raise holds immense value for us at Nazara as we continue to build a diversified gaming platform in India. Beyond the funds raised, his investmentstands as a resounding vote of confidence in Nazara."
Commenting on the investment in Nazara, Nikhil K. 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.”
