Nazara Technologies approves Rs 1 bn share issuance to Zerodha Founders
Technology

Nazara Technologies approves Rs 1 bn share issuance to Zerodha Founders

Nazara Technologies, a publicly traded online gaming company, disclosed in a regulatory filing that its board has greenlit the issuance of shares valued at Rs 100 crore to entities overseen by Zerodha founders Nikhil and Nithin Kamath.

The proposed issuance comprises 1,400,560 equity shares, each with a face value of Rs 4, at a rate of Rs 714 per equity share. This totals Rs 99,99,99,840 and will be distributed proportionally between Kamath Associates and NK Squared.

As a result, Nikhil Kamath's ownership stake in the company will rise from 1% to 3.5%.

Nikhil Kamath, a partner at Kamath Associates and NKSquared, expressed optimism about India's gaming sector's robust future growth and commended Nazara for its well-established, profitable gaming platform. He pledged support for Nitish and his team in achieving Nazara's growth objectives.

These newly issued equity shares will be locked in for six months starting from the date of issuance. The fresh capital infusion will be allocated to fulfill the company's financial needs and expansion strategies, including potential acquisitions and investments in various enterprises.

CEO of Nazara Technologies, Nitish Mittersain, emphasised the significance of Nikhil Kamath's investment, citing it as a vote of confidence in Nazara's mission to develop a diverse gaming platform in India.

Analysts at brokerage firm Prabhudas Lilladher speculate that the funds may be directed towards expanding Nazara's presence in either the 'Freemium' or the 'Gamified Early Learning' segments, given the regulatory challenges facing real-money gaming (RMG) in light of the recent 28% GST Council tax announcement.

Dinesh Joshi, a Research Analyst at Prabhudas Lilladher, noted that while preferential allotment would result in a 2.1% equity dilution, Nazara operates in a high-growth gaming sector where scalability is paramount, potentially necessitating periodic dilutions, especially in the initial stages.

Nazara Technologies, a publicly traded online gaming company, disclosed in a regulatory filing that its board has greenlit the issuance of shares valued at Rs 100 crore to entities overseen by Zerodha founders Nikhil and Nithin Kamath.The proposed issuance comprises 1,400,560 equity shares, each with a face value of Rs 4, at a rate of Rs 714 per equity share. This totals Rs 99,99,99,840 and will be distributed proportionally between Kamath Associates and NK Squared.As a result, Nikhil Kamath's ownership stake in the company will rise from 1% to 3.5%.Nikhil Kamath, a partner at Kamath Associates and NKSquared, expressed optimism about India's gaming sector's robust future growth and commended Nazara for its well-established, profitable gaming platform. He pledged support for Nitish and his team in achieving Nazara's growth objectives.These newly issued equity shares will be locked in for six months starting from the date of issuance. The fresh capital infusion will be allocated to fulfill the company's financial needs and expansion strategies, including potential acquisitions and investments in various enterprises.CEO of Nazara Technologies, Nitish Mittersain, emphasised the significance of Nikhil Kamath's investment, citing it as a vote of confidence in Nazara's mission to develop a diverse gaming platform in India.Analysts at brokerage firm Prabhudas Lilladher speculate that the funds may be directed towards expanding Nazara's presence in either the 'Freemium' or the 'Gamified Early Learning' segments, given the regulatory challenges facing real-money gaming (RMG) in light of the recent 28% GST Council tax announcement.Dinesh Joshi, a Research Analyst at Prabhudas Lilladher, noted that while preferential allotment would result in a 2.1% equity dilution, Nazara operates in a high-growth gaming sector where scalability is paramount, potentially necessitating periodic dilutions, especially in the initial stages.

Next Story
Products

TOTO India Launches Premium G & L Showers with Sleek Faucet Range

TOTO India has launched its G Shower and L Shower series, alongside an expanded range of GT, LH, and Pull-Out lavatory faucets. The collection blends advanced technology, refined aesthetics, and everyday comfort, staying true to TOTO’s philosophy of creating spaces that are both beautiful and functional. The G Shower series delivers the 3Rs of showering: Relaxing, Refreshing, and Revitalizing. Features include the Calming Shawl spray mode, Warm Spa technology, and multiple overhead and hand-shower options across eight finishes. The L Shower complements this with easy-to-use controls sui..

Next Story
Infrastructure Energy

Hero Future Energies Secures Funding for 120 MW Hybrid Project

Hero Future Energies (HFE), through its SPV Clean Renewable Energy Hybrid Three, has secured Rs 19.08 billion in funding from the State Bank of India (lead) and Canara Bank. The funds will be used to develop and construct HFE’s 120 MW renewable energy hybrid project at Kurnool, Andhra Pradesh. The project, contracted with SJVN, integrates wind, solar, and storage technologies to deliver reliable peak power. With a 21-year repayment period, the funding ensures timely execution and the commencement of commercial operations. The financial closure demonstrates continued lender confidence in..

Next Story
Infrastructure Energy

IOC GPS Renewables Raises Rs 8.36 billion Debt for Compressed Biogas Plants

IOC GPS Renewables Private Limited (IGRPL), a joint venture between IndianOil Corporation  and GPS Renewables, has raised Rs 8.36 billion (approx. US$ 95 million) in debt financing from Indian Bank to execute nine Compressed Biogas (CBG) projects across India.   The funding is the largest single-bank debt raise in the CBG sector and the first fully non-recourse financing in India for these projects. The plants—four in Haryana, three in Uttar Pradesh, one each in Chhattisgarh and Andhra Pradesh—will each produce 15 tonnes of CBG per day using paddy straw as feedstock. All nin..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?