Nazara Technologies Limited, a leading gaming and sports media company, today announced significant strategic moves including a major fundraise and an increased stake in one of its subsidiaries.
In a board meeting held on Wednesday, Nazara’s directors approved a preferential issue of up to 94,31,294 equity shares at INR 954.27 per share, aiming to raise approximately INR 900 crore. The shares will be issued to a mix of institutional and individual investors, including SBI Innovative Opportunities Fund and Think India Opportunities Master Fund LP.
Additionally, Nazara plans to acquire an additional 19.35% stake in its subsidiary, Absolute Sports Private Limited, for a consideration of up to INR 145.47 crore. This acquisition will be funded through a combination of cash (INR 72.73 crore) and a share swap. Upon completion, Nazara’s stake in Absolute Sports will increase to 91.03%.
Absolute Sports, which operates the popular sports website Sportskeeda, has shown strong growth with its revenue increasing from INR 79 crore in FY2021-22 to INR 196 crore in FY2023-24.
As part of this transaction, Nazara will issue up to 7,62,202 new equity shares to the existing shareholders of Absolute Sports as consideration for the 9.09% stake acquisition.
In a separate development, Mr. Kuldeep Jain has resigned from his position as an Independent Director of Nazara Technologies, citing other business commitments.
These strategic moves are subject to shareholder and regulatory approvals. Nazara has scheduled an Extraordinary General Meeting on October 12, 2024, to seek shareholder approval for these preferential issues.
The announcements underscore Nazara’s aggressive growth strategy in the rapidly evolving gaming and sports media sector in India. The substantial fundraise is expected to provide the company with the capital needed to pursue further expansion and consolidation opportunities.
