Nazara Tech soars 8% on fundraising plans

In early August, the company said it would invest up to $500,000 (around Rs 4.15 crore) in Israel-based Snax Games as the diversified gaming and sports media firm looks to expand its portfolio.

Shares of Nazara Technologies Limited jumped over 8 percent to Rs 814 in early trade on August 31 after the company said it is considering raising funds by issuing equity shares on a preferential basis, in accordance with the Companies Act, the gaming company said in an exchange filing on August 30.

This is the second time in two months that the company has opted to raise capital. In July, the company decided to raise funds through the issue of equity shares. The board of directors approved raising its authorised share capital from Rs 30 to Rs 50 crore.

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In early August, the company said it would invest up to $500,000 (around Rs 4.15 crore) in Israel-based Snax Games as the diversified gaming and sports media firm looks to expand its portfolio.

The investment will be made by Nazara Technologies' Singapore subsidiary in one or two tranches in the form of a Simple Agreement for Future Equity (SAFE), the company said in a stock market filing. Following the agreement, Nazara Singapore will have the right to acquire equity shares in Snax Games at a future date.

Nazara is a gaming and sports media platform. It maintains a strong presence not only in India but also across emerging and well-established global markets like Africa and North America. Their offerings span various domains including interactive gaming, eSports, ad-tech, and gamified early learning ecosystems.

In the April-June quarter, Nazara posted a 31 percent rise in profit after tax at Rs 20.9 for the quarter ended June. In the corresponding period last year, profit after tax came in at Rs 15.9 crore.

Revenue from operations stood at Rs 254.4 crore in the quarter under review, up 13.9 percent from Rs 223.1 crore a year ago.

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