Nazara Tech gains 2% after Zerodha's Nikhil Kamath raises stake in Rs 250-cr funding round

Nazara Technologies also received board approval for the acquisition of a 10.77 percent stake in Kofluence Tech.

Nazara Technologies shares gained 2 percent in early trade on January 18 after the company’s board of directors approved a preferential allotment of equity shares to raise up to Rs 250 crore from Nikhil Kamath of Zerodha, and other investors.

Nikhil Kamath's Kamath Associates, NKSquared, Plutus Wealth Management, Chartered Finance & Leasing, and ICICI Prudential Mutual Fund will pick up 28.66 lakh shares of Nazara Technologies, at a price of Rs 872.15 each.

From the January 17 closing price of Rs 936.75, the shares are bought at a 6.9 percent discount.

Zerodha co-founder Nikhil Kamath's two firms - Kamath Associates and NKSquared - will invest Rs 50 crore and their combined stake will increase from 2.53 percent to 3.93 percent. Plutus Wealth is also investing Rs 50 crore to raise its stake from 6.14 percent to 6.63 percent.

As of 9.20am, shares of the company were quoting Rs 948.95 on the NSE, higher by 1.3 percent from the previous session’s closing price.

This marks the completion of its targeted fund-raise of Rs 750 crore announced last year. The company had raised funds from SBI Mutual Fund and Zerodha co-founder Nikhil Kamath in September 2023.

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Nazara Technologies also received the board nod for acquiring a 10.77 percent stake in Kofluence Tech, the social media influencer-led marketing-tech platform, from certain existing investors through a share swap.

Nazara Technologies and Kofluence plan to launch an influencer-driven game discovery platform, where influencers will promote Nazara's games across various social media platforms.

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