Nikhil Kamath, the founder of Zerodha, one of India’s leading stock brokerage firms, is reportedly exploring opportunities to increase his stake in Nazara Technologies, a prominent mobile gaming company and sports media platform, to 3.5%. Kamath, who currently holds approximately 1% of Nazara Technologies, is in discussions to expand his personal investment in the company, according to a report by CNBC TV18.
Nazara Technologies is set to hold a crucial board meeting on September 4, during which it will deliberate on strategies to secure additional funds. In an official announcement made on August 30, the company revealed its intention to seek board approval for raising capital through the issuance of equity shares or securities on a preferential basis.
In an exchange filing, Nazara Technologies stated, “Pursuant to Regulation 29 of the Listing Regulations, we wish to inform you that a meeting of the Board of Directors of Nazara Technologies Limited (the ‘Company’) is scheduled to be held on Monday, September 04, 2023, inter-alia, to consider and if thought fit, approve raising of funds by issuance of equity shares/securities of the Company on a preferential basis.”
This move comes after Nazara Technologies secured board approval in July to raise up to INR 750 Crores and increase its authorized share capital from INR 30 Crores to INR 50 Crores. However, it is essential to note that there have been no reports confirming shareholder approval for this capital infusion since then.
Nazara Technologies has been actively expanding its presence in the gaming industry in recent months. In August, the company invested $500,000 in Israeli game developer Snax Games, acquiring exclusive rights to publish Snax Games’ titles in the Indian subcontinent and the Middle East on a revenue-sharing basis for the next five years. Additionally, in May, the company announced its intention to increase its stake in Next Wave Multimedia to nearly 72%.
Financially, Nazara Technologies has seen significant growth in the fiscal year 2022-23 (FY23). The company reported a consolidated net profit of INR 61.4 Crores during this period, reflecting its strong performance. Moreover, revenue from operations surged by an impressive 75% year-on-year (YoY), reaching INR 1,091 Crores during the same period.
Nikhil Kamath’s potential increase in his stake in Nazara Technologies demonstrates growing interest in India’s booming gaming and technology sectors. The outcome of the board meeting on September 4 will provide crucial insights into the company’s plans for capital infusion and its continued expansion in the dynamic gaming industry. Investors and industry enthusiasts will be closely monitoring these developments as they unfold.