Nazara Tech shares gain after board approves fund raise via preferential issue of warrants

Shares of Nazara Technologies Ltd. gained on Wednesday, April 1, after the company on Monday announced a fund raise via preferential issue of warrants.

The company is looking at raising ₹500 crore via the same. Each warrant will be convertible into one equity share and is priced at ₹260 apiece. The stock trades below these levels.

The fundraise includes participation from Riambel Capital PCC, a SEBI-registered Category I Foreign Portfolio Investor, S Gupta Family Investments, Plutus Investment and Holding Pvt. Ltd. (promoter group), Classic Enterprises and Founders Collective, Nazara Tech said.
The company added the proceeds from the fund raise will primarily be deployed for strategic acquisitions, including the recently-announced Bluetile and BestPlay transactions, and also to support expansion across the existing business verticals.

Nazara Tech’s joint managing director and CEO Nitish Mittersain said the capital raise comes at a key phase in the firm’s journey as it looks at scaling its gaming business globally. He said the fresh capital, with the company’s acquisition strategy, will help build AI-enabled gaming platforms and strengthen its position on the sector.

Shares of Nazara Tech were up 2.7% lower at ₹239.2 apiece around 10.15 am on Wednesday. The stock has declined 7% in the past month and 14.6% this year, so far.

Also Read: IREDA Q4 Update: Loan book growth slows further to 22%; stock in focus