Nazara Technologies approves Rs 1 bn share issuance to Zerodha Founders
07 Sep 2023
2 Min Read
CW Team
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
3i Infotech Reports Rs 7.25 Bn Revenue for FY25
3i Infotech, a leading provider of digital transformation, technology services and technology solutions, announced its consolidated financial results for the fourth quarter and full year FY25, ended on March 31st, 2025. The company maintained its growth momentum, displaying consistent progress for the 3rd consecutive quarter.In Q4 FY25, 3i Infotech reported revenue of Rs 1.87 billion, reflecting steady performance compared to Rs 1.81 billion in Q3 FY25 and Rs 1.97 billion in Q4 FY24. The company delivered strong profitability improvements, with gross margin growing by 14.8 per cent Q-o-Q and 1..
Next Story
Emerald Finance Joins Baya PTE to Boost SME Bill Discounting
Emerald Finance is a dynamic company offering a spectrum of financial products and services including its flagship Earned Wage Access (EWA) in India, has entered into a strategic partnership with Singapore-based Baya PTE through its Indian subsidiary. This collaboration aims to strengthen bill discounting services for Small and Medium Enterprises (SMEs), enabling faster access to working capital and improved cash flow management.The initiative is designed to support SMEs that supply to large corporates such as JSW Steel, Delhivery, and PVR INOX, among others. By facilitating timely invoice dis..
Next Story
BLS E-Services Crosses Rs 5 Bn Revenue Mark in FY25
BLS E-Services, a technology-enabled digital service provider, announced its audited consolidated financial results for the quarter and full year period ended 31 March 2025.Speaking about the performance and recent updates, Shikhar Aggarwal, Chairman, BLS E- Services said, 鈥淲e are delighted to report a remarkable performance in FY25, as we achieved several milestones during the fiscal year. FY25 marked our highest-ever financial performance, as we surpassed Rs 5 billion milestone in Total Income during the year, which was reported at Rs 5.45 billion, a notable YoY growth of 76 per cent. The ..
