Shares of Nazara Tech surged 5.60% to settle at Rs 2,630.80 on Wednesday.
New Delhi: Gaming and sports media platform Nazara Technologies on Wednesday announced that its board has approved a preferential allotment of fresh equity to raise Rs 315.30 crore from marquee institutional investors. The Rakesh Jhunjhunwala-backed company said that the "infusion of fresh funds will be utilized to invest in growth initiatives as well as pursue strategic acquisitions in the various business verticals of the company including gamified learning, freemium, skill based real money gaming and e-sports as the company continues to expand its 'Friends of Nazara' ecosystem."
In a notification to the exchanges, Nazara said it "will issue 14,29,266 equity shares of face value of Rs 4 each at a price of Rs 2,206 per equity share aggregating to Rs 315,29,60,796 to Gamnat Pte Ltd and Plutus Wealth Management LLP."
Nazara Tech CEO Manish Agarwal said, "The investment from such institutional investors will act as a catalyst for the Nazara flywheel to operate faster across all business segments and will result in compounding of the shareholder value organically and inorganically at parent as well as at subsidiary levels."
The gaming and sports media platform had made a stellar debut at the exchanges earlier in March this year.
The Board also said that it "has approved the acquisition of 1,601 equity shares of Rs 10 each representing 5.54% of the paid up share capital of Rusk Media Private Limited for a total consideration not exceeding Rs 2.02 crore."
Nazara mentioned that Rusk brings expertise of creation of content for Gen-Z and Millenials. The content startup posted revenues of Rs 7.1 crore in the financial year 2020-21 (FY21), up from Rs 3.4 crore in 2019-20 (FY20).
Besides this, Nazara Tech said it has further "issued 6,48,125 equity shares worth Rs 142,97,63,750 crore to Unnati Management Consultants, an existing shareholder of OpenPlay Technologies Pvt Ltd, to acquire the balance 76.70% stake."
The 'Friends of Nazara' network comprises of established gaming companies in which Nazara holds majority stakes and works actively with existing founders and management teams to rapidly achieve scale.
The shares of the company surged 5.60% to settle at Rs 2,630.80 on Wednesday.
