Nazara Raises INR 855 Cr Via Preferential Issue

SUMMARY

The preferential issue saw participation from SBI Mutual Fund, Caratlane founder Mithun Sacheti, Aamara Capital, among others

Earlier in September, the company said that it would raise INR 900 Cr by issue of preference shares on a private placement basis

The fresh funds will be deployed to fuel "strategic acquisitions, fund business expansion, and enhance the company’s ability to seize new growth opportunities

Listed gaming major Nazara Technologies has raised INR 855 Cr ($101.3 Mn) from SBI Mutual Fund, Caratlane founder Mithun Sacheti, Aamara Capital, among others.

The company announced its plans to raise the funds in September. It then said that it would raise INR 900 Cr by issue of preference shares on a private placement basis to fuel “strategic acquisitions, fund business expansion, and enhance the company’s ability to seize new growth opportunities”.

In an exchange filing on Wednesday (November 27), Nazara said that pursuant to the receipt of the application money from the eligible allottees, its board approved the allotment of 89.59 Lakh shares at INR 954.27 per share to raise INR 855 Cr.

SBI Mutual Fund bought the highest 23.05 Lakh shares of Nazara for INR 219.99 Cr in the round. Trailing SBI, Junomoneta and Think India Opportunities Master Fund LP bought 15.71 Lakh shares each for INR 150 Cr and INR 149.99 Cr, respectively. Sacheti and his brother Siddhartha Sacheti (CEO of Jaipur Gems) bought shares worth INR 74.99 Cr in the private placement round.

Other investors that participated in the round included Madhusudan Kela’s Cohesion MK Best Ideas Sub-Trust, Aamara Capital, Discovery Global Opportunity (Mauritius), Ratnabali Investment and Meenakshi Mercantiles.

Post the round, Nazara’s outstanding equity shares have increased to 8.55 Cr from 7.65 Cr earlier.

It is pertinent to note that in its statement in September, Nazara also said that it has acquired an additional 19.35% stake in Absolute Sports Pvt Ltd, the parent company of Sportskeeda, for INR 145.5 Cr.

However, last week, the company said that its plan to acquire the additional stake in Sportskeeda parent has been deferred till December 17 due to procedural requirements.

Earlier this month, Nazara reported a 33% decline in its consolidated net profit to INR 16.24 Cr in Q2 FY25 from INR 24.18 Cr in year-ago period. Operating revenue grew 7% to INR 318.94 Cr from INR 297.24 Cr in the year-ago quarter.

Nazara’s shares ended today’s trading session 0.47% lower at INR 991.55 on the BSE.