Nazara Technologies Ltd today said its board has approved the issuance of equity shares worth ₹25 crores to existing shareholders of Datawrkz Business Solutions Pvt. Ltd on a preferential basis. The issuance is of 1,10,617 shares of the face value of ₹4 each at an issue price of ₹2,260 per equity share, the company said in an exchange filing. Datawrkz is a digital media buying firm.
In January, the company said it has decided to make a strategic investment by the acquisition of 55% of the equity share capital, on a fully diluted basis, of Datawrkz in two tranches. Today’s announcement is part of the first tranche. Nazara Tech is backed by billionaire investor Rakesh Jhunjhunwala.
Post completion of the first tranche, the company will hold a 33% equity stake, on a fully diluted basis, in Datawrkz Business Solutions. The preferential issue is subject to the approval of shareholders of the company. The Board further approved an investment of ₹30 crores in Next Wave Multimedia by way of subscription to further equity shares.
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“In furtherance to the approval given by the Board of Directors for investment of upto ₹20 crores in Next Wave Multimedia Private Limited (Next Wave), subsidiary of the Company, the Board of Directors today at its meeting has in-principally approved further investment in equity shares of Next Wave Multimedia Private Limited, for an amount upto Rs. 10 crores. Accordingly, the Company will be making an investment of upto ₹30 crores in Next Wave by way of subscription to further equity shares. The Company shall update the Exchange at the time of actual investments,” Nazara Tech said in a stock exchange filing.
The board has approved convening an extraordinary general meeting on 4 April for seeking the necessary approval of the shareholders.