Nazara Tech zooms 12%, clocks fresh 52-week high- here is why

Nazara Tech share price NSE: Nazara Technologies shares on Monday zoomed as much as 12.4 per cent to clock a fresh 52-week high of Rs 854 on NSE after the online gaming company informed the bourses that it would issue 14 lakh shares worth Rs 100 crore to Zerodha co-founder Nikhil Kamath's firms. The online gaming company briefed bourses that it would issue shares of the face value of Rs 4 each at a price of Rs 714 per equity share to Kamath's companies. The shares, worth nearly Rs 100 crore, will be issued to Kamath Associates and NKSquared -- a partnership firm represented by its partners Nikhil and Nithin Kamath, the Nazara Tech's BSE filing read. The fresh funds will be utilised to invest in funding requirements and growth objectives of the company, including for making strategic acquisitions and investments in various companies, the company said in a statement. The counter finished at Rs 837 apiece, up 10.2 per cent on NSE.

The fresh funds will be utilised to invest in funding requirements and growth objectives of the company including for making strategic acquisitions and investments in various companies, the company said in a statement. Nitish Mittersain, CEO of Nazara Technologies said, "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. Beyond the funds raised, his investment stands as a resounding vote of confidence in Nazara." Nikhil Kamath now has a total of 3.5 per cent stake in the mobile gaming platform “in his personal capacity”.

“Gaming in India is poised for strong growth in the years to come and Nazara has built a well-diversified, profitable gaming platform well suited to take advantage of opportunities in the years ahead. We look forward to supporting Nitish and his team in achieving their growth aspirations for Nazara,” Kamath added. In addition, Nazara invested nearly Rs 4.15 crore through its subsidiary, Nazara PTE Ltd, in Snax Games Ltd, an Israeli game developer last month.

The gaming and sports media platform's profit after tax (PAT) surged 31 per cent to Rs 20.9 crore (year-on-year) in the first quarter of the current financial year. The revenue grew 14 per cent (YoY) to Rs 254.4 crore and EBITDA by 10 per cent to Rs 33.1 crore for the quarter ended June 30. Nazara has offerings across the interactive gaming, eSports, ad-tech and gamified early learning ecosystems.

Nazara Tech share price history 

Nazara Tech's stock has given a positive return of over 27 per cent in the last 12 months (from September 5, 2022). In comparison, the headline index Nifty 50 has rallied over 10 per cent

(With IANS inputs)

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