Nazara Technologies, an online gaming company owned by Big Bull Rakesh Jhunjhunwala, has raised funds of Rs 315 crore through preferential allotment from two institutional investors. The company has said in an exchange filing that Nazara Technology has issued 14.20 lakh shares to Gamnat Pte and Plutus Wealth Managment. These shares have been issued to these investors at the rate of Rs 2,206 per share.
These shares were issued on Wednesday at a price of 16 percent below the company’s share prices. As per SEBI guidelines, these shares will have a lock-in period of up to one year from the date of issue, ie these shares will not be traded within one year.
The fund will be used for the expansion of the company.
According to the company, with the use of this fund, the company will implement its plans. These include from strategic acquisitions in various business verticals to new initiatives in business verticals. Rakesh Jhunjhunwala holds 10.82 percent stake in this company. According to the June quarter data, Jhunjhunwala has 32,94,310 shares of this company. This is about 10.82 percent of the total issued shares of the company. Shares of Nazara Technologies closed 5.43 per cent higher at Rs 2,625.10 on the NSE on Wednesday.
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Nazara Technologies shares likely to rise
Analysts say that the stock of Nazara Technologies can see good growth as the gaming industry in the country is growing rapidly. The company’s revenue has grown by 84 percent in the last one year. Nazara is being seen as a platform from where strategic acquisitions can take place in the gaming ecosystem. In the recent past, Rakesh Jhunjhunwala has made new investments in the shares of many companies.