In a notable move, Nikhil Kamath and Nithin Kamath have secured a substantial 11,46,590 shares in a burgeoning gaming stock through a preferential issue, while the seasoned Jhunjhunwala family maintains a commanding ownership of 65,88,620 shares!
Adding to this development, Nazara Technologies Ltd recently greenlit the allotment of 28,66,474 fully paid-up equity shares, priced at Rs 4 each, and boasting a premium of Rs. 868.15 per share. The total value of this allocation stands impressively at Rs. 2,49,99,95,299.10. This decision, executed via a circular resolution on March 2, 2024, by the company’s Board of Directors, underscores the company’s strategic move as it opts for a preferential allotment through private placement.
Following is the detailed list of allottees and their respective allocations in the recent preferential allotment by Nazara Technologies Ltd:
- Kamath Associates (Partnership Firm represented by its partners Nikhil Kamath & Nithin Kamath) – 5,73,295 equity shares
- NKSquared (Partnership Firm represented by its partners Nikhil Kamath & Nithin Kamath) – 5,73,295 equity shares
- Plutus Wealth Management LLP – 5,73,295 equity shares
- Chartered Finance & Leasing Limited – 2,86,647 equity shares
- ICICI Prudential ESG Fund – 1,49,056 equity shares
- ICICI Prudential Flexicap Fund – 2,52,250 equity shares
- ICICI Prudential Technology Fund – 4,58,636 equity shares
Total Allotment: 28,66,474 equity shares
Aggregate Subscription Amount: Rs. 2,49,99,95,299.10
Post allotment, the paid-up equity share capital of Nazara Technologies Ltd stands as follows:
- Existing paid-up share capital: 7,33,16,948 equity shares, amounting to Rs. 29,32,67,792
- Post allotment paid-up share capital: 7,61,83,422 equity shares, amounting to Rs. 30,47,33,688
Recent developments indicate significant activity surrounding Nazara Technologies Ltd, including its subsidiary Nodwin Gaming Private Limited’s acquisition of Ninja Global FZCO in the UAE. Amidst this, notable investors like Rakesh Jhunjhunwala and Nikhil Kamath have realized substantial gains of Rs 33,04,19,293 and Rs 4,67,14,073 respectively in just one day, showcasing the potential breakout in this small-cap tech stock.
In terms of financial performance, Nazara Technologies Ltd posted impressive sales of Rs 320.4 crore for the quarter, with EBITDA increasing by 24% year-over-year to Rs 37.7 crore. Despite slower revenue growth in Real Money Gaming and Ad Tech, robust performance from “Animal Jam” and “Sportskeeda” contributed to the overall improvement in EBITDA. Notably, the Esports category exhibited an impressive 79% year-over-year EBITDA growth.
Moreover, Nazara Technologies Ltd successfully reached its fundraising target of Rs 760 crore for FY24 through a preferred placement with renowned investors.
With a market cap exceeding Rs 5,011 crore, Nazara Technologies Ltd remains almost debt-free, with current debt standing at Rs 109 crore, representing just 2.17% of its market cap.
Over the past year, the stock has surged by 42.86%, outperforming the BSE Sensex Index, which recorded a 22.64% increase. Given these dynamics, investors are advised to closely monitor this small-cap gaming stock for potential investment opportunities.
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