Nazara Tech Gains 2% as Zerodha’s Nikhil Kamath Boosts Stake in Rs 250-Cr Funding Round

• ByStartupStory     |    January 18, 2024

Shares of Nazara Technologies witnessed a 2% surge in early trading on January 18 following the board of directors’ approval of a preferential allotment of equity shares to raise up to Rs 250 crore. The investment is led by Nikhil Kamath of Zerodha, along with other notable investors.

Nikhil Kamath’s entities, Kamath Associates, NKSquared, Plutus Wealth Management, Chartered Finance & Leasing, and ICICI Prudential Mutual Fund, are set to acquire 28.66 lakh shares of Nazara Technologies at a price of Rs 872.15 each.

At a 6.9 percent discount from the January 17 closing price of Rs 936.75, this strategic move reflects confidence in the growth potential of Nazara Technologies.

Zerodha’s co-founder Nikhil Kamath, through Kamath Associates and NKSquared, is making a significant investment of Rs 50 crore. This will result in a combined stake increase from 2.53 percent to 3.93 percent. Plutus Wealth Management is also injecting Rs 50 crore, aiming to raise its stake from 6.14 percent to 6.63 percent.

The shares, as of 9:20 am, were quoted at Rs 948.95 on the NSE, indicating a 1.3 percent increase from the previous session’s closing price.

This move marks the successful completion of Nazara Technologies’ targeted fund-raising of Rs 750 crore announced in the previous year. Notably, the company had earlier secured funds from SBI Mutual Fund and Zerodha co-founder Nikhil Kamath in September 2023.

In addition to the funding news, Nazara Technologies has received board approval for acquiring a 10.77 percent stake in Kofluence Tech, a social media influencer-led marketing-tech platform, through a share swap with certain existing investors.

Nazara Technologies and Kofluence plan to collaborate on an influencer-driven game discovery platform, where influencers will play a key role in promoting Nazara’s games across various social media platforms.

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