After Zerodha's Nikhil Kamath, SBI Mutual Fund to invest Rs 410 crore
September 07, 2023

After Zerodha's Nikhil Kamath, SBI Mutual Fund to invest Rs 410crore in Nazara Technologies

 

September 07, 2023

Nazara Technologies on Thursday said theSBI Mutual Fund will be investing a total of Rs 410 crore through equity shareissuance. The funds will be invested via three schemes of SBI Mutual Fund ---SBI Multicap Fund, SBI Magnum Global Fund and SBI Technology OpportunitiesFund.

Thecompany said it is proposing to issue 57,42,296 Equity Shares at a price of Rs.714/- per Equity share aggregating to Rs 4,099,999,344/- (“Issue”) to SBIMutual Fund, by way of preferential issue on private placement basis.

As per the company’s regulatory filing, SBI Multicap Fund will beinvesting about Rs 200 crore, while SBI Magnum Global Fund is investing aboutRs 120 crore and SBI Technology Opportunities Fund is investing the remainingRs 90 crore.

Theproposed Issue of Equity Shares shall be subject to lock-in as per therequirement of Chapter V of Securities and Exchange Board of India (Issue ofCapital and Disclosure Requirements), Regulations, 2018.

NazaraTechnologies currently has shareholder approval to raise up to Rs 750 crore.

Thecompany said the infusion of fresh funds will be utilized to invest in fundingrequirements and growth objectives of the Company including for makingstrategic acquisitions and investments in various companies / body corporates /entities / gaming funds, meeting growth and funding requirements based on thebusiness opportunities across the subsidiaries / associates / joint venture ofthe Company, as applicable, through investment in subsidiaries / associates /joint venture of the Company, meeting capital expenditures and working capitalrequirements and repayment of debt obligations of the company and itssubsidiaries from time to time if any.

Nitish Mittersain, CEO of Nazara Technologies, said: “Making Indiathe gaming nation of the world has been a long-pursued dream for all of us atNazara. India’s largest domestic mutual fund investing in Nazara is animportant milestone for us in this two decade long journey. We are very excitedto welcome SBI Mutual Fund as our investor."

At1.45 pm, shares of Nazara Technologies were trading at Rs 868.60, down by 1.55per cent.

Lastweek, Nazara Technologies said that it will be issuing up to 14 lakh equityshares of face value Rs 4 each to Zerodha Co-Founder Nikhil Kamath's companies.

“Wewish to inform you that the board … considered and approved Issuance of up to14,00,560 shares of the company, for cash, at an issue price of Rs 714 perEquity Share aggregating to an amount of Rs 99,99,99,840 to M/s KamathAssociates (Partnership firm represented by its partners Nikhil Kamath andNithin Kamath) and M/s NKSquared (Partnership firm represented by its partnersNikhil Kamath and Nithin Kamath),” the company said in a regulatory filing.The latest investment takes Nikhil's stake in the company to about 3.5 per centfrom 1 per cent.

Post announcement, Nikhil Kamath said he invested in the gamingfirm because of its strong track record and its leadership position in thedomestic online gaming segment. He said that the online gaming industry isgrowing rapidly in India, driven by the increasing popularity and penetrationof smartphones and the growing number of young people in the country.

“The advent of technologyaround virtual reality and augmented reality is bound to make devices cheaper,more accessible, and create newer, broader pockets of opportunity. I feel inthe days to come the penetration of gaming in India will be significantlyhigher than it is today,” he added.

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