Nazara Tech to raise Rs 410 crore from SBI Mutual Fund

Online gaming company Nazara Technologies' board approved a proposal on Thursday to issue preferential shares worth Rs 410 crore to SBI Mutual Fund. The company said it will raise funds by issuing about 57.4 lakh shares, with face value of Rs 4 each, to the fund house at Rs 714 apiece, subject to shareholders' approval, according to a statement. 

The funds will be invested via three SBI Mutual Fund schemes: SBI Multicap Fund, SBI Magnum Global Fund and SBI Technology Opportunities Fund. 

Nazara Tech shares recovered more than half of their intraday losses after the news. At 1:20 pm, Nazara Tech shares were down one per cent at Rs 873.6 apiece on BSE, after falling as much as 2.6 per cent to Rs 859.7 apiece earlier during the session. 

The latest fund-raise comes close on the heels of the company announcing the issuance of 14 lakh shares, worth Rs 100 crore, to Zerodha co-founder Nikhil Kamath's firms. 

“Making India the gaming nation of the world has been a long-pursued dream for all of us at Nazara. India’s largest domestic mutual fund investing in Nazara is an important milestone for us in this two-decade-long journey. We are very excited to welcome SBI Mutual Fund as our investor," said Nitish Mittersain, CEO of Nazara Technologies. 

Nazara Tech said the infusion of funds will be utilised to invest in funding requirements and growth objectives of the company, including strategic acquisitions and investments in various companies, and growth and funding requirements based on the business opportunities.

"Highly respected investors backing Nazara makes me very proud of what we have built and I would like to extend a hearty welcome to SBI Mutual Fund," said Vikash Mittersain, Chairman and MD of Nazara Tech. 

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