Nazara Technologies Poised for Massive Growth: Set to Raise Rs 750 Cr from QIBs
Nazara Technologies Poised for Massive Growth: Set to Raise Rs 750 Cr from QIBs
Nazara Technologies, a prominent gaming company in India, has announced plans to raise to Rs 750 crore through qualified institutional placements (QIP). The funds will be raised through the issuance of new equity shares or other equity-linked instruments.
By opting for QIP, they aim to attract institutional investors and raise capital to support its growth initiatives. This move indicates the company’s intent to strengthen its financial position and capitalize on the growing opportunities in the gaming industry.
With the gaming market witnessing significant growth in India, the company seeks to leverage this trend and expand its presence in the gaming sector. The funds raised through the QIP will likely be utilized for strategic investments, acquisitions, technological advancements, and other business expansion activities.
Nazara Technologies’ decision to raise funds through equity placement reflects its confidence in the market and its commitment to capitalizing on emerging opportunities in the gaming industry.
According to a document sourced from the National Stock Exchange (NSE), the board of directors at Nazara Technologies has passed a resolution to raise to Rs 750 crore. Additionally, the company has approved an increase in authorized share capital to Rs 50 crore. However, the names of the investors who will acquire the new shares have not been disclosed.
Nazara Technologies is a gaming and sports media platform with a presence in multiple regions, including India, Africa, the Middle East, and Europe. The company offers various services, including eSports engagements, ad-tech solutions, and learning ecosystems.
By raising funds through this resolution, Nazara Technologies aims to strengthen its financial position and support its expansion plans. The increased authorized share capital indicates the company’s readiness to accommodate the issuance of new shares and attract potential investors.
It has been actively investing in various companies in the gaming and sports media space. Some notable investments made by Nazara include backing web3 gaming venture Kratos Studios in its $20 million seed round, with former Nazara CEO Manish Aggarwal and angel investor Ishank Gupta serving as co-founders of Kratos. In addition, Nazara’s subsidiary Nodwin secured $28 million in funding from Nazara, Krafton, and other investors, valuing it at $349 million.
Nazara’s investment portfolio also includes companies such as Halaplay, WildWorks, Kiddopia, Sports Unity, Sportskeeda, and Datawrkz. These investments demonstrate Nazara’s strategy of supporting promising ventures in the gaming and sports sectors, both within India and globally.
By investing in these companies, Nazara aims to leverage its expertise, technologies, and market reach to enhance its overall gaming and sports ecosystem and capitalize on emerging opportunities in the industry.
The company made its initial public offering (IPO) in January 2021 and got listed on the stock exchange in March of the same year. As of now, the company’s share price is Rs 725. It reached its 52-week high price of Rs 789 on September 12th the previous year.
With a market capitalization of approximately Rs 4,800 crore or $585 million, Nazara Technologies has gained significant value since its IPO, reflecting investor confidence in the company’s prospects in the gaming and sports media industry.
Nazara Technologies has achieved substantial growth in its revenue and profits during the fiscal year 2022-23. The company’s operating scale witnessed a remarkable increase of 75.5%, reaching Rs 1,091 crore compared to Rs 621.7 crore in the previous fiscal year.
This growth can be attributed to the success of its eSports segment, gamified early learning initiatives, and adtech business. Furthermore, Nazara’s profits also recorded a notable rise of 21.1%, amounting to Rs 61.4 crore, demonstrating the company’s strong financial performance.
The positive financial results highlight Nazara’s effective business strategies and its ability to capitalize on the growing market demand for eSports and gamified learning experiences. With its diverse revenue streams and consistent growth, Nazara Technologies is well-positioned to continue its success in the gaming and media industry, both in India and internationally.
In conclusion, Nazara Technologies has emerged as a key player in the gaming and sports media sector, showcasing significant revenue growth and profitability. With its investments in innovative ventures, strategic acquisitions, and a diverse portfolio of offerings, the company has established a strong foothold in the market. As it continues to capitalize on the growing demand for eSports, gamified learning, and adtech solutions, Nazara is well-equipped to navigate the evolving landscape of the gaming industry and sustain its upward trajectory in the years to come.
