Kamath Brothers of Zerodha Set to Infuse Rs 100 Crore into Nazara Technologies

• ByStartupStory     |    September 4, 2023

Nazara Technologies’ board has given the green light to issue shares worth Rs 100 crore to Zerodha’s founders, Nikhil and Nithin Kamath. This move, announced on September 4, has significantly boosted Nazara’s stock price. The company plans to issue approximately 14,00,560 shares at an issue price of Rs 714 per Equity Share, totaling Rs 99,99,99,840. These shares will be allocated to M/s Kamath Associates and M/s NKSquared, both represented by Nikhil and Nithin Kamath. 

“We wish to inform you that the board … considered and approved Issuance of up to 14,00,560 shares of the company, for cash, at an issue price of Rs 714 per Equity Share aggregating to an amount of Rs 99,99,99,840 to M/s Kamath Associates (Partnership firm represented by its partners Nikhil Kamath and Nithin Kamath) and M/s NKSquared (Partnership firm represented by its partners Nikhil Kamath and Nithin Kamath),” the company said in a regulatory filing.

This investment increases Nikhil Kamath’s stake in Nazara to around 3.5 percent, up from 1 percent. 

The latest investment takes Nikhil’s stake in the company to about 3.5 percent from 1 percent. Speaking to CNBC TV-18, he said he plans to raise his stake further in the future.

The news was cheered by investors. At 10:48 a.m., the stock was trading at Rs 846 on the National Stock Exchange, up 11.38 percent from the previous close.

“Nikhil Kamath symbolizes success in India’s tech arena, and this fundraiser holds immense value for us at Nazara as we continue to build a diversified gaming platform in India. Beyond the funds raised, his investment stands as a resounding vote of confidence in Nazara,” said Nitish Mittersain, CEO of Nazara Technologies

The funds raised will be used for Nazara’s growth objectives, including strategic acquisitions and funding requirements. Nikhil Kamath believes that India’s gaming industry has significant growth potential, and Nazara is well-positioned to capitalize on these opportunities. This move follows Nazara’s decision in July to raise capital by increasing its authorized share capital from Rs 30 crore to Rs 50 crore.

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