Shares of Nazara Technologies were under pressure in early trade on November 29, declining 2.14% to ₹999.50 on NSE, despite the company raising ₹855 crore ($100 million) through a preferential issue of over 8.9 million equity shares. The funding round, aimed at driving strategic growth, saw participation from key investors.
Key Details of the Fundraising:
- Amount Raised: ₹855 crore
- Lead Investor: SBI Mutual Fund (₹220 crore)
- Other Investors: Junomoneta Finsol, Think Investments, Discovery Investments, Mithun Sacheti (CaratLane founder), and Jaipur Gems CEO.
Utilization of Funds:
Nazara Technologies plans to use part of the funds to acquire an additional 19.35% stake in its subsidiary, Absolute Sports Private Limited, the owner of Sportskeeda. The acquisition will cost ₹145.47 crore, with ₹72.735 crore paid in cash and the remainder through share issuance.
Financial Performance (Q2 FY25):
- Revenue from Operations: ₹318.94 crore (+7.3% YoY)
- Gaming Revenue: ₹114.05 crore (+9.3%)
- Esports Revenue: ₹181.76 crore (+5.7%)
- Expenses: ₹321.27 crore (+11.4%)
- Content, Event, and Web Server Costs: ₹129.52 crore (+52.9%)
- Employee Expenses: ₹67.64 crore (+38.2%)
