Nazara Technologies board approves raising Rs 750 Cr via equity issue

Gaming firm Nazara Technologies' board of directors on Monday approved the company's move to raise Rs 750 crore.

The raise will be done through an issue of equity shares as well as other equity-linked instruments or securities, the company said in its filing with the exchanges.

"The board considered and approved raising of funds by way of issuance of such number of equity shares having a face value of Rs 4 each of the company for an aggregate amount not exceeding Rs 750 crore," it said in the filing.

Nazara's board also approved raising the company's share capital from Rs 30 crore to Rs 50 crore

It is of note that this is the first time the company will undertake fundraising activities after its decision to launch its IPO in 2021. Its stock rose briefly in early trade on the back of the fundraise news.

It remains unclear what the company will use the fresh funds for, however, media reports suggest that it is likely to fund its continued acquisition spree.

In March this year, Nazara Technologies bought Pro Football Network—a digital platform that tracks the National Football League in the US—for $1.82 million, giving its subsidiary Absolute Sports a 73.3% stake in the firm.

Later in May, it increased its majority stake position in mobile games maker Nextwave Multimedia from 52.38% to 71.88%.

The price of Nazara Technologies shares is at Rs 723.50 apiece at the time of writing this article.