Nazara Technologies Ltd’s board has approved to raise Rs 410 crore through an equity issue from SBI Mutual Fund. The company will be issuing 57,42,296 shares at a price of Rs 714 each to SBI Mutual Fund.
The investment from SBI Mutual Fund will be through SBI Multicap Fund (Rs 200 crores), SBI Magnum Global Fund (Rs 120 crores), and SBI Technology Opportunities Fund (90 crores). Notably, the fund is also the largest domestic mutual fund in the country in terms of market capitalisation.
The CEO of Nazara Tech, Nitish Mittersain, took to his ‘X’ account to announce the same.
— Nitish Mittersain (@mittersain) September 7, 2023
“Making India the gaming nation of the world has been a long-pursued dream for all of us at Nazara. India’s largest domestic mutual fund investing in Nazara is an important milestone for us in this two decade long journey. We are very excited to welcome SBI Mutual Fund as our investor,” Mittersain said.
Along with the CEO, Chairman and Managing Director of Nazara, Vikash Mittersain also expressed his appreciation to SBI Mutual Funds. As per Moneycontrol, the new funds will be utilized in company growth, strategic acquisition, investment/funding in subsidiaries.
Now, as per Securities and Exchange Board of India’s (SEBI) norms, all the shares will be subjected to lock-in period. Hence, Nazara Technologies’ lot of shares with SBI MF would be exercisable only 36 months after issue.
Nikhil Kamath invests Rs 100 crores in Nazara Technologies
The company had already expressed its interest in expanding through raising more funds and received a go ahead from the board to raise up to Rs 750 crore. This will come as positive news for the gaming and sports media firm, as it eyes expansion.
Nazara Technologies has recently raised Rs 100 crore through Zerodha co-founder Nikhil Kamath’s firms. Prior to his investment, Kamath also remarked esports industry as an excellent investment opportunity.