Digital gaming and esports company Nazara Technologies has raised Rs 410 crore from SBI Mutual Fund, marking the second tranche of Rs 750 crore fundraising.
The board at Nazara Technologies has passed a resolution to issue 57,42,296 equity shares for Rs 714 per share to raise Rs 410 crore, regulatory filings with the National Stock Exchange (NSE) show.
SBI Multicap Fund, SBI Magnum Global Fund, and SBI Technology Opportunities Fund, three schemes of SBI Mutual Fund, participated in the round with investments of Rs 200 crore, Rs 120 crore, and Rs 90 crore, respectively.
The SBI Mutual fund will hold 7.83% stake in the company following the investment, according to filings.
The fresh funds will be utilized to invest in funding requirements and growth objectives of the firm including for making strategic acquisitions and investments in various corporate entities, Nazara said in a filing.
This development follows a Rs 100 crore infusion by the Kamath brothers from Zerodha via a right issue, allowing the latter to hold a 2.72% stake in the gaming company.
Nazara currently has a market cap of Rs 5,765.4 crore ($698 million) with a share price listed at Rs 871.05 (as of 07/09/2023) at 12:47 AM. The company also touched its 52-week high of Rs 929.05 on Wednesday.
The company recorded a significant 14% growth in scale during the first quarter of FY24. Its operating revenue surged to Rs 254.4 crore in Q1 FY24 from Rs 223.1 crore in Q3 FY23. Its profit also rose 31.19% to Rs 20.86 crore quarter on quarter.
