Nazara Board Approves ₹500 Crore Fundraise Via Preferential Warrants

According to a regulatory filing, Nazara Technologies has notified that it will raise ₹500 crore by way of a preferential issue of warrants.

The warrants will be offered by the company at the rate of ₹260 per warrant and will have investors such as Riambel Capital, S Gupta Family Investments, Plutus Investment and Holding, Classic Enterprises, and Founders Collective. The suggested fundraiser is subject to shareholder and regulatory approvals.

At 12:17 PM on Wednesday, Nazara Technologies shares were up 2.08% to ₹237.90.

How Will The Company Use The Funds?

According to Nazara, the proceeds will be invested in strategic acquisitions and the consolidation of its core business segments.

These are mobile gaming, esports, and gamified learning, which are core areas of interest to the company.

The fundraising comes as Nazara continues to expand through acquisitions. Earlier this month, the company said it will acquire a 50% controlling stake in Spain-based Bluetile Games and its in-house engagement platform BestPlay Systems for about $100.3 million (around ₹918 crore), its largest deal so far.

The company has also outlined plans to deploy ₹800–1,000 crore towards acquisitions, indicating a continued focus on inorganic growth.

What Is Driving Nazara’s Acquisition Strategy?

Nazara has been aggressively undertaking acquisitions and strategic investments in various segments:

• Approved an in-principle investment of up to ₹15 crore in Rusk Media in February.

• Invested $500,000 through its subsidiary in nCore Games, developer of the FAU-G franchise

• Exited its 94.85% stake in OpenPlay Technologies, which operates Classic Rummy.

• Acquired UK-based Fusebox Games for $27.2 million in 2023.

• In July 2024, they gained complete ownership of the edtech app Kiddopia.

• Acquired US-based WildWorks for $10.4 million in 2022.

• Investments include Absolute Sports (Sportskeeda) and early-stage ventures such as Learntube.ai, Funky Monkeys, and ReelSaga.

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How Has Nazara Performed Recently?

Nazara reported a decline in its recent quarterly performance. Operating revenue fell 24% year-on-year to ₹405.9 crore, while net profit declined 35% to ₹8.8 crore in the third quarter.

The decline was primarily because of the separation of its esports division, Nodwin Gaming. Gaming still brought in the most revenue, totalling ₹256.9 crore. This was followed by Adtech, with ₹115.4 crore, and esports accounted for ₹33.9 crore.

Sources:

Economic Times

Business Line