Nazara Tech to raise Rs 900 crore; increases stake in Absolute Sports to 91%

Gaming and sports media company Nazara Technologies on Wednesday said its board has approved a preferential equity issue to raise Rs 900 crore. Nazara also announced increasing its stake in Absolute Sports to 91 per cent.

The fresh capital will fuel the firm's strategic acquisitions and business expansion, and provide newer growth opportunities, a company statement said.

"The preferential equity issue amounting to INR 900 crores will be placed with marquee investors such as SBI Mutual Fund, Junomoneta Finsol (an associate of Plutus Wealth), Think Investments, Discovery Investments, Mithun and Siddharth Sacheti, Cohesion Investments, Chartered Finance and Leasing, Ratnabali Investments and Aamara Capital, further strengthening Nazara's financial foundation for long-term expansion," it said.

Nazara acquired an additional 19.35 per cent stake in Absolute Sports, the parent company of Sportskeeda, for Rs 145.5 crores, with 50 per cent of the consideration paid in cash and the remaining amount in stock, it added.

With this increased stake, Nazara now owns a91 per cent stake in Absolute Sports.

" This Rs 900 crore fundraise will be instrumental in accelerating our growth across key segments. Additionally, increasing our stake to 91 per cent in Absolute Sports (Sportskeeda) reinforces our leadership in the sports media landscape," said Nitish Mittersain, CEO & Jt MD of Nazara Technologies.