Stock broking unicorn Zerodha founders Nithin and Nikhil Kamath have invested $12.09 million (Rs 100 crore) in listed gaming firm Nazara Technologies.
The board of Mumbai-based gaming and sports media platform on Monday approved the investment, it said in a stock exchange filing.
The Zerodha brothers will buy up to 14,00,560 equity shares at the price of Rs 714 per equity share through the entities Kamath Associates and NKSquare, both of which are partnership firms represented by the two brothers. These shares will have a lock-in period of about six months.
“Gaming in India is poised for strong growth in the years to come and Nazara
has built a well-diversified, profitable gaming platform well suited to take advantage of opportunities in the years ahead," Nikhil Kamath, partner of Kamath Associates and NKSquared said in a statement.
Kamath’s two entities will together hold about 2.72% in Nazara Technologies, up from 0.67% before, as per the disclosure. Nazara’ shares jumped 9.81% on the National Stock Exchange of India post the announcement.
Nazara will use the fresh capital to invest in funding requirements and its growth objectives, which include making strategic acquisitions and investments in various other companies and entities. The company operates with a house of brands approach with multiple, hosting multiple gaming companies under its umbrella.
"Nikhil Kamath symbolises success in India's tech arena, and this fund raise holds immense value for us at Nazara as we continue to build a diversified gaming platform in India,” said Nitish Mittersain, chief executive of Nazara Technologies, said. “Beyond the funds raised, his investment stands as a resounding vote of confidence in Nazara.”
