Nazara Tech to issue 14 lakh shares worth Rs 100 cr to Nikhil Kamath's firms

New Delhi, Sep 4 (IANS) Online gaming company Nazara Technologies on Monday said it will issue up to 14 lakh equity shares of face value of Rs 4 each at a price of Rs 714 per equity share to Zerodha Cofounder Nikhil Kamath's companies.

The shares, worth nearly Rs 100 crore, will be issued to Kamath Associates and NKSquared -- a partnership firm represented by its partners Nikhil and Nithin Kamath, the company said in a BSE filing.

The fresh funds will be utilised to invest in funding requirements and growth objectives of the company including for making strategic acquisitions and investments in various companies, Nazara Tech said in a statement.

“Kamath symbolises 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.

Nikhil Kamath now has a total of 3.5 per cent stake in the mobile gaming platform “in his personal capacity”. 

“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,” said Kamath.

Last month, Nazara invested nearly Rs 4.15 crore through its subsidiary, Nazara PTE Ltd, in Snax Games Ltd, an Israeli game developer.

The gaming and sports media platform's profit after tax (PAT) surged 31 per cent to Rs 20.9 crore (year-on-year) in the first quarter of the current financial year.

The revenue grew 14 per cent (YoY) to Rs 254.4 crore and EBITDA by 10 per cent to Rs 33.1 crore for the quarter ended June 30.

Nazara has offerings across the interactive gaming, eSports, ad-tech and gamified early learning ecosystems.