Nazara Technologies, a prominent player in the gaming industry, has received approval from its board to raise over ₹500 crore through a preferential issue. The company plans to issue up to 1.92 crore warrants at an issue price of ₹260, which represents a 12% premium over its closing price of ₹232.35.
Promoter Plutus Wealth Management will participate in this funding round, alongside other investors such as Riambel Capital, S Gupta Family Investments, Classic Enterprises, and Founders Collective.
The funds raised will primarily be directed towards strategic acquisitions, including the recently announced deals to acquire stakes in Bluetile Games and BestPlay Systems, as well as to accelerate growth in existing business areas.
Last week, Nazara disclosed that it had signed definitive agreements to acquire approximately 50% stakes in the Spanish casual gaming studio Bluetile Games and the player engagement platform BestPlay Systems for a total of $100.3 million. This acquisition is expected to enhance Nazara's capabilities in game development, distribution, and publishing.
Nitish Mittersain, MD and CEO of Nazara, emphasized the significance of this ₹500 crore fundraising, stating it aligns with the company's ambitious growth plans, particularly regarding the Bluetile and BestPlay acquisitions. He noted that the new capital, combined with their acquisition strategy, positions Nazara for substantial growth in the gaming sector.
In addition to the acquisitions, Nazara plans to provide a loan of ₹4 crore to its subsidiary, Smaash Entertainment.
This fundraising initiative follows a recent stake acquisition by Morgan Stanley, which purchased shares worth approximately ₹69.2 crore through a block deal, briefly boosting Nazara's stock by nearly 4%. Despite this, the stock has faced challenges over the past year.
Financially, Nazara returned to profitability in Q3 FY26, reporting a net profit of ₹8.8 crore, recovering from a loss in the previous quarter, although revenue saw a decline of 24% year-on-year to ₹406 crore.
As of the latest trading session, Nazara's shares closed down 3.25% at ₹232.35.
