Nazara Technologies Share Price Jumps after Nikhil Kamath’s Additional Investment Confirmed
Nikhil Kamath has increased his stake in gaming major Nazara Technologies. Zerodha founder Kamath confirmed to business news channel CNBC-TV18 that this is a long term investment in Nazara Technologies. Kamath further informed that he has made this investment in personal capacity and Zerodha has no connection with this stake. Nazara Technologies has issued shares worth Rs 100 crore to companies associated with Kamath.
Kamath added that he is investing in Nazara Technologies with long term view and he could increase his stake further. With the new investment, Kamath now owns 3.5 percent stake in Nazara Technologies.
The stock jumped 9.5 percent after the news. Currently, trading at Rs 838, the stock is at its 52-week high. The stock touched intraday high of Rs 839 at the time of this report.
The company has issued 14 lakh equity shares of Rs 4 each at premium of Rs 714 per share. As per the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements), Regulations, 2018, these equity shares will be locked in for a period of 6 months from the date of issue.
Nazara Technologies was one of the favorite stocks of ace investor Rakesh Jhunjhunwala. His wife Rekha Jhunjhunwala still holds stake in the company.
Commenting on the development, Nitish Mittersain, CEO of Nazara Technologies, said, "Nikhil Kamath symbolizes 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. Beyond the funds raised, his investmentstands as a resounding vote of confidence in Nazara."
The company is on portfolio of many investors for long term as gaming sector has strong potential.