Gaming company Nazara Technologies has announced plans to raise up to Rs 500 crore through a preferential issue of warrants, as per a recent regulatory filing. The company will issue 1.92 crore warrants at Rs 260 each, convertible into equity shares within 18 months.
The funding round will involve various entities, including Riambel Capital PCC, S Gupta Family Investments, Plutus Investments and Holding, Classic Enterprises, and Founders Collective. The issue price, set at a premium to the market price, reflects investor confidence in Nazara’s growth potential.
Nazara intends to utilize the capital raised to facilitate strategic acquisitions, such as Bluetile and BestPlay, and scale its current business segments. The involvement of the promoter group in the funding round signifies alignment with the company’s long-term vision.
This fundraising initiative follows Nazara’s recent acquisition of Bluetile Games and BestPlay Systems, aimed at bolstering its global casual and social gaming presence. The company initially acquired a 50% stake in the two firms for approximately $100.3 million, with a pathway to complete ownership gradually.
Post warrant conversion, investors are anticipated to collectively hold about a 6.57% stake in Nazara Technologies.
Additionally, the company has approved an unsecured loan of up to Rs 4 crore for its wholly owned subsidiary Smaaash Entertainment, with disbursement planned in multiple tranches. Shareholder approval for the fundraising is slated to be sought through an extraordinary general meeting scheduled for April 30, 2026.
Nazara has acknowledged a subdued financial performance in recent quarters, with its Q3 FY26 operating revenue witnessing a 24% decline year-on-year to Rs 406 crore, accompanied by a 36% profit decrease to Rs 9 crore.
Source: Entrackr : Latest Posts