Nazara Technologies to raise Rs 250 cr via preferential allotment

Nazara Technologies to raise Rs 250 cr via preferential allotment | The Enterprise World

(Source – Business Today)

Nazara Technologies, a prominent gaming and sports media platform, made a significant announcement today as its board approved the preferential allotment of equity shares to raise a substantial Rs 250 crore. This financial move is a crucial step in the company’s broader fundraising initiative, with a target of Rs 750 crore announced earlier in the fiscal year 2024.

The capital infusion is set to come from both new and existing shareholders, demonstrating a robust show of confidence in Nazara Technologies. Among the key contributors are NKSquared, co-founded by Zerodha’s Nikhil Kamath, Kamath Associates, Plutus Wealth Management, and ICICI Prudential Mutual Fund. In adherence to the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, the equity shares resulting from this preferential allotment will be subject to a lock-in period of six months from the date of trading approval, as specified in the regulatory filing on the Bombay Stock Exchange.

Deploy the capital for strategic acquisitions

Nitish Mittersain, the founder and chief executive officer of Nazara Technologies, expressed gratitude for the substantial support from investors. Mittersain highlighted the company’s strengthened financial position with consolidated cash reserves exceeding Rs 1,500 crore. He emphasized Nazara’s readiness to pursue both organic growth and strategic acquisitions, positioning the company favorably in the dynamic gaming and sports media landscape.

The funds raised through this preferential allotment are earmarked for crucial investments aligned with the company’s growth objectives. Nazara Technologies intends to deploy the capital for strategic acquisitions, meeting funding requirements, and addressing general corporate needs. Mittersain underscored the company’s focus on leveraging these fresh funds to navigate strategic opportunities and fuel its expansion plans.

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Combining financial strength with innovative partnerships

In a parallel development, Nazara Technologies revealed the acquisition of a 10.77% equity stake in Kofluence Tech, a noteworthy influencer marketing firm, at a valuation of Rs 32.4 crore. The move is part of Nazara’s broader strategy to diversify its presence in the gaming sector. Notably, NKSquared, an existing shareholder in Kofluence, is actively participating in this acquisition.

The strategic synergy between Nazara Technologies and Kofluence is set to pave the way for a groundbreaking influencer-led game discovery platform. This collaborative venture aims to revolutionize Nazara Technologies’ game distribution by establishing a robust network for the company’s gaming content on various social media platforms. The platform will enable influencers to showcase games, generate excitement around new releases, and drive downloads and engagement. Nazara Technologies envisions this model as a key driver for deeper market penetration, reaching diverse audiences across different social media channels.

With these strategic moves, Nazara Technologies is poised to reinforce its leadership position in the gaming and sports media industry, combining financial strength with innovative partnerships and acquisitions to navigate the evolving landscape successfully.

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