Nazara Technologies to raise ₹250 crore through preferential issue
Nazara Technologies is also set to acquire a 10.77% stake in Kofluence Tech Private Ltd through a share swap. Shares of Nazara Technologies Ltd ended at ₹950, down by ₹16.95, or 1.75%, on the BSE.
Online sports platform Nazara Technologies Ltd on Wednesday (January 17) announced its plans to raise ₹250 crore through a preferential issue of equity shares. The decision was made during a meeting of the board of directors held on Wednesday.
The company aims to issue up to 28,66,474 fully paid-up equity shares, each with a face value of ₹4, at an issue price of ₹872.15 per share. The total amount to be raised through this preferential issue is capped at ₹250 crore. The funds are intended to fuel Nazara Technologies' growth and expansion initiatives.
Also, Nazara Technologies is set to acquire a 10.77% stake in Kofluence Tech Private Ltd through a share swap.
The company plans to acquire 13,875 equity shares, representing the said stake, from existing shareholders of Kofluence, including NKSquared, Pravan Holdings LLP, Sujeet Kumar, Aprameya Radhakrishna, Upsparks LLP, Green Lawns Corporate Advisors LLP, B.A. Advisors LLP, QED Innovation Labs LLP, Ritesh Ujjwal, and LV Angel Fund.
The total consideration for this acquisition is not to exceed ₹32.41 crore.
Further, Nazara Technologies has entered into definitive agreements to give effect to the share swap transaction. The company will issue up to 3,71,637 fully paid-up equity shares, with a face value of ₹4 each, at the same issue price of ₹872.15 per share.
The aggregate amount for this issuance stands at ₹32.41 crore. This issuance will be made to the existing shareholders of Kofluence as consideration for the acquisition of the 10.77% stake.
Nazara and Kofluence together will launch an influencer-led game discovery platform that will transform Nazara Technologies' game distribution by becoming a powerful network for its gaming content on social media.
Influencers can showcase the games, create a buzz around new releases, and drive downloads and engagement. This model would allow Nazara to penetrate deeper into the market, reaching diverse audiences across different social media platforms.
Kofluence is India’s leading social media influencer led marketing tech platform with 600,000-plus registered creators across Instagram, YouTube, Facebook, LinkedIn and Twitter representing 20-plus languages.
Positioned as full stack marketing platform, Kofluence caters to performance metrics across creating awareness, interest, desire and action. Having worked with 500-plus marquee clients across more than 20 sectors, Kofluence has helped brands unlock value through social media creators.
Shares of Nazara Technologies Ltd ended at ₹950, down by ₹16.95, or 1.75%, on the BSE.