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.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code