Rakesh Jhunjhunwala-backed Nazara Tech raises fresh capital

Nazara Technologies issued 1.42 million shares to Gamnat Pte and Plutus Wealth Management at Rs 2,206 per share, a discount of 16 per cent to the company’s current stock price on Wednesday. The Rs. 2,206 issue price for the preferential allotment is based on the volume-weighted average price of the high and low of the stock in the previous two weeks from cut-off date of October 1.

Based on the stock price of October 1, the issue price of the preferential share allotment is at a discount of 5.15 per cent.

The online gaming company has issued 1.2 million shares to Ganmat via preferential allotment and 251,586 shares to Plutus Wealth, exchange filings showed.

“The investment from such institutional investors will act as a catalyst for the Nazara flywheel to operate faster across all business segments and will result in compounding of the shareholder value organically and inorganically at the parent as well as at subsidiary levels,” said Manish Agarwal, chief executive officer at Nazara Tech.

This infusion of fresh funds will be utilized to invest in growth initiatives of the company as well as pursue strategic acquisitions in the various business verticals of the company, Nazara Tech said in a press statement.