Nazara has made a preferential allotment to Nikhil Kamath (Zerodha co-founder).
- Allotment is for Rs 100 cr @ Rs 714/ per share (pre announcement market price was Rs 759.55/ share)
- Nikhil controlled entities already had a stake of around 1% in the Company and this deal will increase his stake to around 3.5%.
- He has spent a total of about Rs 150 cr to acquire 3.5%
- He has also informed to news channels that he may further add to this in future
- Nikhil has made this investment because he is positive about the long term potential of gaming and eSports in India and considers Nazara to be a good bet for that.
In July 2023, Nazara had informed that it’s looking to raise preferential capital of Rs 750 cr.
Investment by Nikhil is part of that round.
Company has gone full gear in marketing Nikhil’s investment and market has given a thumbs up.
To me, however, its not such a major development as it has made out to be –
- It’s a small investment by Nikhil given his overall deployable capital.
- Nikhil invests in various entities both listed and unlisted. Nazara is one out of many such other investments.
Nazara has raised Rs 410 cr further preferential capital from SBI Mutual Funds.
Price is same at Rs 714/ share.