Billionaire Nikhil Kamath, ICICI Prudential, others to invest another Rs 250 crore in Nazara Tech

Mumbai-based diversified gaming and sports media firm Nazara Technologies today said its board has approved a preferential allotment of equity shares to raise Rs 250 crore in funding, which is part of its larger plan, concluding the targeted Rs 750 crore fundraise announced earlier in FY24.

Who are the investors?

The investment will be led by Billionaire Nikhil Kamath's Kamath Associates and NKSquared, who are investing Rs 50 crore each. ICICI Prudential Mutual Fund is infusing Rs 75 crore through three of its schemes. Other notable investors include Plutus Wealth Management, Chartered Finance & Leasing Limited, and ICICI Securities.

A total of 28,66,474 equity shares will be issued at Rs 872.15 per share, the company informed in an exchange filing. 

Nitish Mittersain, Founder & CEO of Nazara Technologies, expressed his enthusiasm, stating, "We are immensely grateful for the robust support from our esteemed investors, such as Nikhil Kamath, ICICI Prudential MF, and Plutus Wealth, who have substantially increased their investments in Nazara."

What is the purpose of fundraising?

According to the company's statement, the raised capital will be utilized to invest in funding requirements and growth objectives of the Company, including for making strategic acquisitions and general corporate purposes

Nikhil Kamath's previous investment in Nazara Tech

Earlier in September 2023, Nazara Tech raised Rs 100 crore from Kamath Associates & NKSquared, managed by Zerodha's founders Nikhil and Nithin Kamath. The current investment would increase Kamath firm's stake to 3.93%, while Plutus Wealth's stake will increase to 6.63%.

Acquiring Kofluence

The development follows the recent acquisition of a 10.77% stake in influencer marketing platform Kofluence. The company also announced the launching of Nazara Publishing to capitalize on India's growing gaming market.

How well is Nazara Tech performing financially?

Nazara's recent financial performance has been promising, with a 16.83% growth in revenue and a 7.86% increase in profits in Q3 FY24. The company also has over Rs 1500 crore in consolidated cash reserves.

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