Nazara Technologies plans to raise up to Rs 750 crore from qualified institutional buyers (QIBs). The company’s board of directors has approved the issuance of new equity shares or equity linked instruments through QIPs. The fundraising will occur in one or more tranches. To proceed, the company will seek shareholder approval through a postal ballot.
The funds obtained from the QIP will be utilized by Nazara to expand its existing businesses, acquire new assets, and invest in new growth opportunities. Currently, the company operates in the gaming, sports, and fitness sectors, with a strong portfolio of brands. Additionally, Nazara aims to expand into Southeast Asia and Latin America, tapping into new markets.
The QIP is a significant development for Nazara, as it addresses the company’s capital requirements for growth. Although the company’s stock price has experienced a downward trend recently, the QIP has the potential to enhance investor sentiment.
Nazara is raising funds for several reasons. Firstly, to expand its current businesses in gaming, sports, and fitness. This expansion involves acquiring new assets and pursuing new growth opportunities. Secondly, the company aims to enter new markets, particularly Southeast Asia and Latin America, which offer substantial growth potential in gaming and sports. Lastly, Nazara seeks to strengthen its balance sheet and improve its financial position, as it currently faces some weaknesses.
The QIP represents a positive step for Nazara, assisting the company in achieving its growth objectives. However, it’s crucial to acknowledge that the success of the QIP relies on various factors, including overall market conditions and the company’s ability to execute its growth plans.
Good Capital’s New Fund to Invest in AI-Powered Startups Across Industries
