Mumbai-based gaming and esports company Nazara Technologies announced that its board of directors has approved a preferential equity issue to raise Rs 900 crore, pending shareholder and regulatory approvals.
The company will use the capital to drive strategic acquisitions, fund business expansion and enhance its ability to take advantage of new growth opportunities.
The development occurs shortly after the The company acquired a 47.7% stake in Moonshine Technologythe owner of PokerBaazi, for Rs 832 crore through a secondary transaction.
Who are the investors?
The issue of preference shares worth Rs 900 crore will be placed with marquee investors including SBI Mutual Fund, Junomoneta Finsol (an associate of Plutus Wealth), Think Investments, Discovery Investments, Mithun and Siddharth Sacheti, Cohesion Investments, Chartered Finance and Leasing, Ratnabali Investments and Aamara Capital.
These shares will be subject to SEBI regulations and lock-up requirements under Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, the company said.
Acquisition of further stake in Sportskeeda
Nazara also acquired an additional 19.35% stake in Absolute Sports Pvt. Ltd., the parent company of Sportskeeda, for Rs 145.5 crore, with 50% of the consideration paid in cash and the remaining amount in shares.
With this, Nazara now owns a 91% stake in Absolute Sports.
Nazara’s acquisition spree
In recent months, Nazara Technologies has been on a buying spree, strategically acquiring companies to bolster its global presence and strengthen its position in the domestic market.
Last week, the company led by Nitish Mittersain announced the Acquisition of a 15.86% stake in GetStan Technologies Pte. Ltd (STAN), an esports community platform, for Rs 18.4 crore in an all-cash deal.
At the end of last month, Nazara also announced the Completion of a 100% stake in UK-based Fusebox Games in a deal valued at Rs 230 crore, further expanding its portfolio.
The Mumbai-based company’s subsidiary, Absolute Sportsacquired assets of DeltiasGaming.com in the same month.
In addition, in July, Nazara acquired an additional unit 48.42% stake in Paper Boat Apps Pvt. Ltd (PBA) from its founders, Anupam and Anshu Dhanuka, for Rs 300 crore.
These continuous acquisitions made India… Nazara is the eighth largest buyer of games worldwideaccording to Drake Star Partners’ Global Gaming Report for Q2 2024.
Comments from the leaders
Nitish Mittersain, CEO & Joint Managing Director, Nazara Technologies Limited, said, “Nazara has demonstrated its ability to attract top-tier investors who believe in our long-term vision of establishing India’s premier gaming powerhouse with global respect. This fundraise of Rs 900 crore will be instrumental in accelerating our growth in key segments.”
“Furthermore, increasing our stake to 91% in Absolute Sports (Sportskeeda) reinforces our leadership in the sports media landscape. Absolute Sports’ growth from start-up to a global media player underlines our commitment to supporting innovative teams that consistently deliver transformative growth,” Mittersain added.
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