Nazara Technologies to raise Rs 900 Cr, increase stake in Sportskeeda
Nazara will acquire an additional 19.35% stake in Absolute Sports Private Limited, a subsidiary of Nazara that owns the popular sports platform, Sportskeeda.
Gaming and sports media company is set to raise approximately Rs 900 crore through a preferential issue of equity shares.
The Nikhil Kamath-backed company held a board meeting on Wednesday, during which several key business decisions were made.
Nazara Technologies will issue 94,31,294 fully paid-up equity shares, with a face value of Rs 4 each, at an issue price of Rs 954.27 per share. The equity shares are being offered to identified non-promoter investors, including SBI Innovative Opportunities Fund, Junomoneta Finsol Private Limited, Caratlane founder Mithun Sacheti, and others.
Nazara will acquire an additional 19.35% stake in Absolute Sports Private Limited—the gaming company's subsidiary which owns the popular sports platform, Sportskeeda. Nazara will acquire 41,173 equity shares from the current shareholders of Absolute Sports, Porush Jain, and Srinivas Cuddapah, for a total consideration of Rs 145.47 crore.
This acquisition will be partially paid in cash (Rs 72.73 crore) and through a share swap of Nazara’s equity shares (Rs 72.73 crore). Upon completion, Nazara will hold 91.03% of Absolute’s equity capital.
“This Rs 900 crore fundraise will be instrumental in accelerating our growth across key segments. Additionally, increasing our stake to 91% in Absolute Sports (Sportskeeda) reinforces our leadership in the sports media landscape," Nitish Mittersain, CEO and Jt MD of Nazara Technologies Limited remarked.
"The growth of Absolute Sports, from its early days as a startup to becoming a global media player, underscores our commitment to supporting innovative teams that consistently deliver transformational growth," he added.
The preferential issue and acquisition are subject to approval by the company’s shareholders during an Extraordinary General Meeting (EGM) scheduled for October 12, 2024, where shareholders will vote on these strategic moves.
The company also informed the exchanges that Independent Director Kuldeep Jain has resigned due to other professional commitments.
Last week, Nazara announced an investment of Rs 832 crore for a 47.7% stake in Moonshine Technology, the parent company of PokerBaazi, through a secondary transaction. Nazara will also inject Rs 150 crore in primary capital into Moonshine via compulsory convertible preference shares, according to a release shared by the company.
Edited by Jyoti Narayan