India-based diversified gaming and sports media platform, Nazara Technologies Limited (BSE: 543280) (NSE: NAZARA), announced that its board has approved the issuance of 57,42,296 Equity Shares at a price of Rs. 714 each. This preferential issue on a private placement basis to SBI Mutual Fund amounts to INR 4,099,999,344 (approx INR 410 crores).

Schemes Through Which SBI Mutual Fund Will Invest

The investment from SBI Mutual Fund will be funneled through three schemes: SBI Multicap Fund, SBI Magnum Global Fund, and SBI Technology Opportunities Fund. The board had earlier approved the issuance of up to 14,00,560 fully paid-up Equity Shares, bringing the total aggregated amount to not exceed Rs. 510 crores.

Compliance with Regulatory Requirements

This issue of Equity Shares will adhere to the lock-in requirements specified under Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements), Regulations, 2018.

Utilization of Fresh Funds

The infusion of capital will serve various growth objectives, including strategic acquisitions, investments in companies, subsidiaries, or joint ventures. The funds will also meet capital expenditures, working capital requirements, and potentially repay any debt obligations of the company and its subsidiaries. “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. We are very excited to welcome SBI Mutual Fund as our investor,” said Nitish Mittersain, CEO of Nazara Technologies.

Key Stakeholder Reactions

Vikash Mittersain, Chairman & MD of Nazara, also added, “Highly respected investors backing Nazara makes me very proud of what we have built and I would like to extend a hearty welcome to SBI Mutual Fund.” Axis capital served as advisors for this transaction.

  India, Nazara Technologies, Nitish Mittersain, SBI Mutual Fund, Vikash Mittersain