Zerodha founders Nithin and Nikhil Kamath are investing up to Rs 100 crore in Nazara Technologies Ltd, the gaming and sports media platform.
Their investment comes at a time the online gaming industry, apart from casinos and horse racing, is bracing for a higher GST of 28 per cent that will come into play from October 1.
Nazara said in a regulatory filing that it will issue 14,00,560 shares at Rs 714 apiece aggregating a little over Rs 99.99 crore proportionately to M/s Kamath Associates & M/s NKSquared. The preferential allotment will result in their combined stake rising to 2.72 per cent (1.36 per cent each) from 0.67 per cent.
Nazara said under Sebi (Issue of Capital and Disclosure Requirements), Regulations, 2018, these shares will be locked in for a period of six months from the date of issue.
The money will be utilised to invest in funding requirements and growth objectives including making strategic acquisitions and investments in various companies.
“Nikhil Kamath symbolises success in India’s tech arena, and this fundraise holds immense value for us at Nazara as we continue to build a diversified gaming platform in India,’’ Nitish Mittersain, CEO of Nazara Technologies, said.
