Nazara Technologies, a leading gaming and sports media company, announced on Wednesday that its board has approved a preferential equity issue to raise ₹900 crore. This fresh capital injection is aimed at fueling strategic acquisitions, business expansion, and unlocking new growth opportunities for the firm. Alongside this funding initiative, Nazara has also increased its stake in Absolute Sports, the parent company of Sportskeeda, to 91%, solidifying its leadership in the sports media sector. The preferential equity will be placed with prominent investors, bolstering Nazara’s financial strength and supporting its long-term growth strategy.

Strategic Capital Raise of ₹900 Crore

Nazara Technologies’ board has greenlit a preferential equity issue to raise ₹900 crore, marking a pivotal move in the company’s growth strategy. The capital will be used to drive strategic acquisitions and expand Nazara’s business footprint across key segments. According to a company statement, the infusion of funds will open new avenues for growth, reinforcing Nazara’s position in the competitive gaming and sports media market.

Participation of Prominent Investors

The ₹900 crore raised through the equity issue will involve investment from a roster of distinguished investors, including SBI Mutual Fund, Junomoneta Finsol (an associate of Plutus Wealth), Think Investments, Discovery Investments, Mithun and Siddharth Sacheti, Cohesion Investments, Chartered Finance and Leasing, Ratnabali Investments, and Aamara Capital. This strategic placement is expected to strengthen Nazara’s financial foundation, enabling the company to pursue its expansion agenda with robust backing from key institutional players.

Enhanced Stake in Absolute Sports

Nazara Technologies has increased its stake in Absolute Sports, the parent company of the popular sports media platform Sportskeeda, to 91%. This acquisition involved a 19.35% additional stake purchased for ₹145.5 crore, with 50% of the payment made in cash and the remaining settled through stock. This move cements Nazara’s dominance in the sports media landscape and highlights its commitment to growing its portfolio of influential media assets.

Reinforcing Leadership in Sports Media

With the increased stake in Absolute Sports, Nazara Technologies solidifies its leadership position in the sports media sector. Nitish Mittersain, CEO and Joint Managing Director of Nazara Technologies, emphasized that this ₹900 crore fundraise would be a critical catalyst in accelerating the company’s growth across its core segments. He highlighted that the expanded stake in Absolute Sports not only strengthens Nazara’s foothold but also aligns with its broader strategy of leadership in the evolving sports media domain.

Future Growth and Strategic Acquisitions

The capital raise is expected to support Nazara Technologies’ ongoing efforts to identify and acquire strategic assets that complement its business model. By bolstering its cash reserves, Nazara aims to seize new opportunities that will drive long-term value creation for shareholders. The company’s commitment to expanding its presence in the gaming and sports media sectors is underscored by this significant financial move, positioning Nazara to capitalize on the rapidly growing digital content and sports entertainment markets.