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.
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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.
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The board has approved convening an extraordinary general meeting on 4 April for seeking the necessary approval of the shareholders.