Introduction
Are you a fan of exciting games and sports? If yes, then you might have heard of Nazara Technologies, a thrilling gaming and sports media platform in India. Recently, their stock price hit a high point, and on September 4, 2023, it reached a whopping INR 837.00, thanks to a huge 10.20% rise in just one day! Lets get into what the fuss is all about.
Nazara Technologies Raises Funds through Equity
Nazara is always looking for new and cool ways to grow their business and reach more gamers. To do this, they needed more money. So, they got their board’s permission to raise to ₹100 crores from a smart investor named Nikhil Kamath. He decided to invest his money by buying special shares of Nazara called preferential shares( these shares are just like regular equity shares with a small difference which comes into play when the firm is liquidated and the difference is that the preferential shareholders are paid before the equity shareholders).
In this deal, Nazara agreed to sell 1,400,560 of these special shares at ₹714 per share. That’s a lot of money, totalling ₹999,999,840! Kamath Associates & M/s NKSquared are the investors that Nikhil Kamath is working with to buy these shares.
Key Players in the Game for the Gaming Industry in India
Kamath Associates & M/s NKSquared are important players in this story. They are the ones who believe in what Nazara is doing and have decided to invest in their company by buying shares.
They’re not the only ones who think Nazara is great. Nikhil Kamath, the man behind Kamath Associates & M/s NKSquared, also has high hopes for Nazara’s future. He thinks the gaming industry in India will grow a lot in the coming years, and Nazara will be right at the forefront of it all.
What’s the Goal of the Money Raised?
Now that Nazara has all this extra money, what are they going to do with it? Well, they have big plans! They want to use the cash to help their company grow in many ways. They’ll use the funds to find other companies and investments that can help them soar even higher. Plus, they’ll use this money to make sure Nazara has everything it needs to continue growing and expanding.
What the Experts Say
Some smart folks called analysts, who work for a company called Prabhudas Lilladher, think Nazara is doing great work! They believe Nazara will use this money to get even better at what they do, and maybe even become a big player in the markets like Freemium or Gamified Early Learning segments.
These analysts kept their ‘Buy’ rating for Nazara, even though they thought that this investment might reduce the value of some existing shares. That’s because they believe in Nazara’s potential to grow further.
Conclusion
In a nutshell, Nazara Technologies is making exciting moves in the gaming world. With the investment from Nikhil Kamath—as well as Kamath Associates & M/s NKSquared—the company is on the path to greatness. Even experts like the analysts from Prabhudas Lilladher support Nazara’s journey.
So, if you love gaming and want to see Indian gaming companies grow big, keep an eye on Nazara Technologies. It’s on its way up, and who knows just how high it will soar!
Frequently Asked Questions (FAQs)
What is Nazara Technologies?
Nazara Technologies is an India-based gaming and sports media platform. They develop and distribute a broad spectrum of gaming products, leading in the interactive gaming market.
What was the significant event with Nazara Technologies’ stock?
On September 4, 2023, Nazara Technologies saw a significant surge of 10.20% in their stock price. It went up to INR 837.00 that day.
Who are Kamath Associates & M/s NKSquared?
Kamath Associates and M/s NKSquared are entities led by investor Nikhil Kamath. These entities bought preferential shares in Nazara Technologies as part of the company’s plan to raise funds.
Who is Nikhil Kamath?
Nikhil Kamath is an Indian entrepreneur. He is the co-founder of Zerodha, a retail stockbroker and True Beacon, an asset management company. Kamath is the part of Forbes billionaires list 2023.
Why did Nazara Technologies raise funds?
Nazara Technologies decided to raise funds to make strategic acquisitions and investments, also to meet their company’s growth and funding needs. They plan to expand and improve their gaming platform.
What do analysts from Prabhudas Lilladher say about Nazara Technologies?
Analysts from Prabhudas Lilladher believe Nazara will use the raised funds to expand their presence in the Freemium or Gamified Early Learning segments. Even though there might be equity dilution, they still recommend buying Nazara’s stocks due to its enormous growth potential.
What is a ‘Buy’ rating?
A ‘Buy’ rating is a recommendation by market analysts to purchase the shares of the rated company. If a company has a ‘Buy’ rating, as Nazara does from Prabhudas Lilladher analysts, this suggests they believe the company’s stocks will perform well in the future.
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