Gaming and sports media company Nazara Technologies Limited on Monday raised ₹500 crore with five investors through preferential issue of warrants, furthering its earlier global expansion plans via acquisition strategies.
“This ₹500 crore fundraise comes at an important phase in Nazara’s journey as we execute on our most ambitious growth initiatives, including the Bluetile and BestPlay acquisition. This fresh capital, combined with our acquisition strategy, positions Nazara to build globally scalable, AI-enabled gaming businesses and further strengthen our leadership in the sector,” said Nitish Mittersain, Jt. MD & CEO, Nazara Technologies in an exchange filing, referring to the company’s earlier acqusition announcement for $100.3 million (about ₹918 crore).
The proceeds from this fundraise will be used to support strategic acquisitions, including the Bluetile and BestPlay transactions, and to accelerate growth across existing business verticals.
A total of 1.92 crore warrants will be convertible into one equity share each and are being issued at a price of ₹260 per share, representing a premium to the current market price.
A total of five investors have been named for the preferential issue including promoter group Plutus Investment and Holding Private Limited with 0.99 per cent of the post-preferential issue holding. Other investors are Riambel Capital PCC, a SEBI-registered Category I Foreign Portfolio Investor, S Gupta Family Investments, Classic Enterprises, and Founders Collective. Riambel Capital will have 4.06 per cent holdings post-preferential issue.
According to a company stock exchange, the premium pricing and Promoter Group participation shows strong investor confidence in Nazara’s growth strategy.