The funds will be invested via three schemes of SBI Mutual Fund viz. SBI Multicap Fund, SBI Magnum Global Fund and SBI Technology Opportunities Fund, the company said in its filing to the exchanges.
The stock was trading in the red, down 1.3% over the previous closing of Rs 880 on the NSE. The Nazara Tech shares had hit a 52-week high of Rs 929 on Wednesday.
The above issue is being made in addition to the issuance of up to 14 lakh shares on September 4, 2023, to Kamath Associates and NKSquared, the companies in which Zerodha founder Nitin Kamath and Co-founder Nikhil Kamath are partners.
The above two transactions take the total issue size at Rs 510 crores.
The gaming company will use the funds to invest in funding requirements and growth objectives of the company including for making strategic acquisitions and investments in various other companies, entities or gaming funds, the exchange filing said.
Commenting on the development, Nitish Mittersain, Chief Executive Officer said that “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”. On Nazara’s move to allot shares to Kamath, expert Jinesh Joshi, Research Analyst, Prabhudas Lilladher had said that Nazara operated in a hyper-growth gaming industry where scalability is of prime importance and there could be frequent dilution in stake in the initial stages.
“We believe the funds might be deployed to expand presence in either Freemium or Gamified Early Learning segment as Real Money Gaming is facing regulatory hurdles post levy of 28% GST on full bet value whereas ESports business is well funded post recent fundraise of Rs2 billion,” Joshi had said then.
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