At a time when the online gaming industry is talking about the after-effects of the 28 percent tax announced by the GST Council, Nazara Technologies has raised 100 crores from Zerodha founders Nikhil Kamath and Nithin Kamath marking the first investment this year.
The board at the company passed a special resolution to issue 14,00,560 equity at an issue price of Rs 718 each to two entities Kamath Associates and NKSquared owned by Kamath brothers. After acquiring the stakes in the company the share of both firms will reach to 2.72 per cent.
The company said that the funds would be utilized to invest in funding requirements and growth objectives. Nazara Technology with a market cap of Rs 5,393.5 crore (652 million) with a share price listed at 815.05 (04/09/2023) at 10 AM.
After the announcement of the new GST rate hundreds of online gaming companies wrote letters to the government to reconsider its decision and Nazara was also part of the group.
Speaking on the approval made by the board, Nitish Mittersain, CEO of Nazara Technologies said, “Nikhil Kamath is the pioneering face of the country’s tech arena, and in such a time the fund from the deal holds immense value for Nazara. The company wants to diversify its gaming platform in India. The latest investment shows the confidence of him in the company”
The mobile gaming company is spreading its wings in the online gaming landscape as last week, it invested in Israel-based game developer Snax Games. On the other hand, Apart from Kamat Brothers, the Jhunjhunwala family also has a 9.96 percent stake in the company.
