SBI Mutual Fund Invests Rs 410 Crores in Nazara Technologies Through Preferential Issue

• ByStartupStory     |    September 7, 2023

Nazara Technologies, a leading name in India’s gaming and sports media industry, has received a substantial investment from SBI Mutual Fund. The company’s board has approved the issuance of 57.42 lakh equity shares, amounting to Rs 410 crores, to SBI Funds at a price of Rs 714 per share on a preferential basis.

These fresh funds are earmarked to support Nazara Technologies’ various growth objectives and investment plans. This includes strategic acquisitions, investments in different companies, and addressing the company’s capital expenditure and working capital requirements. Additionally, the funds will be utilized for repaying debt obligations of the company and its subsidiaries, if necessary.

The investment will be made through three schemes of SBI Mutual Fund: SBI Multicap Fund, SBI Magnum Global Fund, and SBI Technology Opportunities Fund. This investment comes in addition to the issuance of up to 14,00,560 fully paid-up Equity Shares approved by the Board in a previous meeting held on September 4, 2023. The combined value of both issuances does not exceed Rs. 510 crores.

Nazara Technologies clarified, “The proposed Issue of Equity Shares shall be subject to lock-in as per the requirement of Chapter V of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements), Regulations, 2018.”

Earlier in September, the company’s board had approved the issuance of shares worth Rs 100 crore to the founders of Zerodha, Nikhil and Nithin Kamath.

Expressing his enthusiasm about the investment, Nitish Mittersain, CEO of Nazara Technologies, said, “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.”

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