Gaming company Nazara Technologies Limited’s Board of Directors on July 10, 2023, approved the raising of funds up to INR 750 crores by issuing equity shares having a face value of INR 4 each and/or any other equity linked instruments/securities, subject to approval from stakeholders.
In a letter addressed to the Listing Compliance Departments of BSE Limited and National Stock Exchange of India Limited, Nazara said it will raise funds by selling the aforementioned shares to qualified institutional placements or by a preferential allotment, or a combination of both. Further, it will also increase the total amount of money it can raise from investors, i.e., the authorized share capital, from INR 30 crores to INR 50 crores, based on stakeholder approval.
Earlier in May, Economic Times reported how Nodwin Gaming, a subsidiary of Nazara Technologies, signed agreements to raise $28 million (about INR 232 crore) from Nazara. Sony Group, Krafton – a South Korean digital games developer, Hyderabad-based gaming solutions provider InnoPark India, and digital entertainment and tech company JetSynthesys. According to Nodwin Gaming’s Co-Founder Akshat Rathee, the fresh capital was to be used for acquisitions to grow the intellectual property (IP) portfolio and expand to emerging markets.
While the company has not stated its reason for raising these funds, it has sought shareholders’ approval for both the increase in authorized share capital, issuance of securities, and ancillary actions by way of postal ballot process.
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