Nazara Technologies approves shares worth Rs 100 Cr to Zerodha founders

Nazara Technologies' board on Monday approved to issue shares worth Rs 100 crore to Zerodha’s founders Nikhil and Nithin Kamath.

With this development, the stocks of the company jumped 10.53% to hit a 52-week high of Rs 839.15.

Nazara's regulatory fillings stated, "The company is proposing to issue 14,00,560 equity shares of face value of Rs 4/- each at a price of Rs 714/- per equity share aggregating to Rs 999,999,840/- (“Issue”) proportionately to M/s Kamath Associates & M/s NKSquared. As per the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements), Regulations, 2018, these equity shares will be locked in for a period of 6 months from the date of issue."

This infusion of fresh funds will be utilised by the company to invest in funding requirements and growth objectives, including for making strategic acquisitions and investments in various companies meeting growth and funding requirements, the gaming company stated.

"Nikhil Kamath symbolizes success in India's tech arena, and this fund raise holds immense value for us at Nazara as we continue to build a diversified gaming platform in India. Beyond the funds raised, his investment stands as a resounding vote of confidence in Nazara," said Nitish Mittersain, CEO of Nazara Technologies.

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Last week, it was reported that Nikhil Kamath was looking to increase his stake in the mobile games publisher from 1% to 3.5%.

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.

“Gaming in India is poised for strong growth in the years to come and Nazara has built a well-diversified, profitable gaming platform well suited to take advantage of opportunities in the years ahead. We look forward to supporting Nitish and his team in achieving their growth aspirations for Nazara,” added Nikhil Kamath, Partner, Kamath Associates & NKSquared.