Nazara Tech: Board approves Rs 750 cr equity-backed issue

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Gaming company Nazara Tech’s Board of Directors (BoD) has approved the proposal to raise up to Rs 750 crores. The company is known to develop and invest in the gaming industry heavily. Esports, AR gaming, fantasy sports, to name a few, are the categories that the company operates in.

Notably, this will be the first-ever fundraise for the company ever since it debuted on the stock market in March 2021. In a regulatory stock exchange filing, the company reported that it will use a combination of equity shares and equity-linked instruments or securities for raising funds.

“Raising of funds by way of issuance of such number of equity shares having face value of Rs 4 each of the company and/or any other equity-linked instruments/securities or any combination thereof, for an aggregate amount not exceeding Rs 750 crore through one or more qualified institutional placements or preferential allotment or through combination thereof or any other permissible mode,” the company said in its filing as reported by The Economic Times.

Meanwhile, Nazara Tech, which invested in RMG companies like Halaplay and Classic Rummy, also joined All India Gaming Federation (AIGF) as its principal member. With this membership, the company will lead the All-India Game Developers’ Forum (AIGDF), AIGF’s non-profit entity.

Gaming companies receive funding amid market slowdown

PwC, one of the Big Four accounting firms, recently reported that while the Indian startup ecosystem had a stagnant funding activity in the first half of 2023, gaming companies, on the other hand, raised funds at an increasing pace.
Earlier in May, Nodwin Gaming – a subsidiary of Nazara Tech, raised $28 million from Krafton, Sony Group, JetSynthesys, and InnoPark India. Nodwin is also regarded as one of the biggest gaming and esports companies in India, having professional esports teams and content creators at its disposal.