Nazara Technologies said it has granted 1,41,593 employee stock options at an exercise price of INR 662 per option
Nazara reported a 31% YoY rise in its consolidated profit after tax in Q1 FY24 to INR 20.9 Cr
Shares of the company jumped over 6% during intraday session on Monday following Q1 results and ended the session 4.3% higher at INR 693.35 on the BSE
Nazara Technologies has approved granting 1,41,593 employee stock options under the ‘Nazara Technologies Employee Stock Option Scheme 2023’.
“The aforesaid Employee Stock Options have been granted at an exercise price of INR 662 per option…,” Nazara Technologies said in an exchange filing on Friday (July 28).
The exercise price was determined on the basis of the stock’s closing price on the NSE on July 27, the company said.
The ESOPs will not vest earlier than the minimum period of 1 year and not later than the maximum vesting period of 4 years from the date of grant, the company said, adding that they can be exercised any time after the date of vesting and within 5 years from the date of grant.
It must be noted that ESOPs are a major cost for most of the new-age tech startups as companies. Fintech giant Paytm’s ESOP costs rose 5% to INR 377 Cr in Q1 FY24 from INR 359 Cr in Q1 FY23.
Shares of Nazara surged over 6% in the intraday session on the BSE on Monday following the company reporting 31% year-on-year (YoY) rise in its consolidated net profit to INR 20.9 Cr in the quarter ended June 2023. The shares later gave up some of the gains to end the session 4.3% higher at INR 693.35.
Nazara’s revenue from operations rose 14% to INR 254.4 Cr in Q1 FY24 from INR 223.1 Cr in the year-ago quarter. The gaming vertical accounted for INR 109.5 Cr revenue in Q1 FY24.
Earlier this month, Nazara said its board approved a proposal to raise up to INR 750 Cr.
The company said it would raise the capital via qualified institutional placement, or preferential allotment, or a combination of both. The startup will also explore any other permissible means to raise the funds.
Nazara operates in the larger Indian gaming and allied markets, which have seen a massive growth in popularity in recent years on the back of cheap smartphones and data tariffs. As per a report, India was home to more than 507 Mn gamers at the end of FY22, with the industry expected to grow to a market size of $8.6 Bn by FY27