Nazara Technologies approves shares worth Rs 410 Cr to SBI Mutual Fund

Nazara Technologies's board today announced the approval of an issue of equity shares of 57.42 lakh, worth Rs 410 crores to SBI Funds at Rs 714 apiece on a preferential basis.

These fresh funds will be used to invest in funding requirements and growth objectives of the company including for making strategic acquisitions and investments in various companies, meeting growth and funding requirements based on the business opportunities of the company, besides funding for its capital expenditures and working capital requirements and repaying of debt obligations of the company and its subsidiaries from time to time, if any. 

The funds will be invested via three schemes of SBI Mutual Fund namely SBI Multicap Fund, SBI Magnum Global Fund, and SBI Technology Opportunities Fund. 

"The aforesaid issue is being made in addition to the issuance of up to 14,00,560 fully paid-up Equity Shares approved by the Board in its meeting held on September 4, 2023, both together aggregating to an amount not exceeding Rs. 510 crores (Rupees Five Hundred and Ten Crores) (comprising of the preferential issue approved by the Board on September 4, 2023 and the Issue)," the company said in its regulatory filings.

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"The proposed Issue of Equity Shares shall be subject to lock-in as per the requirement of Chapter V of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements), Regulations, 2018."

Earlier on September 4, the board had approved issuing shares worth Rs 100 crore to Zerodha’s founders Nikhil and Nithin Kamath.

“Making India the gaming nation of the world has been a long-pursued dream for all of us at Nazara. India’s largest domestic mutual fund investing in Nazara is an important milestone for us in this two-decade-long journey. We are very excited to welcome SBI Mutual Fund as our investor," said Nitish Mittersain, CEO of Nazara Technologies.

Earlier, in July, the board of directors approved the company's move to raise Rs 750 crore through an issue of equity shares as well as other equity-linked instruments or securities.