News

Published: September 8, 2023
Updated: September 8, 2023

Nazara Technologies Secures INR 410 Crore Investment from SBI Mutual Fund to Boost Expansion

Nazara Technologies, a diversified gaming and sports media company in India, has announced a significant financial move. On September 7, the company received board approval to raise INR 410 crore from SBI Mutual Fund, India's largest asset management company. This investment aims to provide Nazara Technologies with the financial muscle to pursue potential acquisitions and expand its existing business operations.

The Equity Share Issuance:

Nazara Technologies plans to issue 57.4 lakh equity shares (57,42,296 equity shares) to SBI Mutual Fund at a price of INR 714 per share through a preferential issue on a private placement basis. At the time of the announcement, Nazara Technologies was trading at INR 871 on the National Stock Exchange.

SBI Mutual Fund's Allocation:

The INR 410 crore investment from SBI Mutual Fund will be distributed across three of its schemes. SBI Multicap Fund will invest approximately INR 200 crore in exchange for a 3.82 percent stake, while SBI Magnum Global Fund will invest around INR 120 crore for a 2.29 percent stake. The remaining INR 90 crore will come from SBI Technology Opportunities Fund, representing a 1.72 percent stake. This combined investment will result in SBI Mutual Fund owning a 7.83% stake in Nazara Technologies.

Previous Investments and Fundraising Plans:

This recent investment follows Nazara Technologies' allocation of shares worth INR 100 crore to Nikhil Kamath, the co-founder of Zerodha. The company already had shareholder approval to raise up to INR 750 crore, with plans to do so through qualified institutional placements, preferential allotments, or a combination of both.

Utilisation of Capital:

Nazara Technologies intends to utilize the capital raised to support its funding requirements and growth objectives. This includes making strategic acquisitions and investments to strengthen its presence in various verticals, further solidifying its position in the gaming and esports industry.

CEO's Perspective:

CEO Nitish Mittersain expressed enthusiasm about SBI Mutual Fund's investment, emphasising the company's long-standing goal to make India a global gaming hub. He highlighted that the timing of this investment aligns with the company's strategic vision and emphasised the importance of the quality of the investor.

Expansion Plans:

Nazara Technologies currently operates in gaming, esports, and advertising sectors, with a particular focus on growing its portfolio of gaming IPs through acquisitions. The company also plans to explore opportunities in gaming-focused ad tech companies and expand its presence in developed markets.

Partnerships and Growth:

The company is actively seeking game publishing tie-ups and recently partnered with Israel- based Snax Games. This reflects Nazara Technologies' commitment to expand its gaming offerings and collaborate with global players in the industry.

Industry Growth:

The article concludes by highlighting the growth potential of India's online gaming industry, which reached $2.6 billion in FY22 and is projected to grow at a compound annual growth rate of 27 percent to $8.6 billion in FY27, according to a report by Lumikai.

Nazara Technologies' strategic investment from SBI Mutual Fund positions the company for further expansion and acquisitions in the rapidly growing Indian gaming and esports market.