Gaming and sports media platform Nazara Technologies’ board has approved the issue of shares worth INR 100 Cr to firms managed by Zerodha founders Nithin Kamath and Nikhil Kamath, the company said in an exchange filing on Monday.

The company plans to issue 14,00,560 equity shares with a face value of INR 4 each, priced at INR 714 per share. The issuance will amount to INR 100 Cr, and shares will be proportionately allotted to M/s Kamath Associates and M/s NKSquared, a partnership firm represented by its partners Nikhil and Nithin Kamath.

“Nazara Technologies Limited, an India-based, diversified gaming and sports media platform today announced that its board has approved preferential allotment of equity shares to raise up to INR 100 Cr, subject to the receipt of approval of the shareholders of the company and such regulatory/statutory authorities as may be applicable,” the company said.

Nazara intends to use the capital to fulfill the funding needs and support the company’s growth initiatives, which may include strategic acquisitions and investments.

“Nikhil Kamath symbolises success in India’s tech arena, and this fundraise holds immense value for us at Nazara as we continue to build a diversified gaming platform in India. Beyond the funds raised, his investment stands as a resounding vote of confidence in Nazara,” Nitish Mittersain, CEO of Nazara Technologies, said.

Nikhil Kamath, partner of Kamath Associates and NKSquared, said, “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.”

Last week, reports surfaced that Nikhil Kamath, the founder of Zerodha, was considering increasing his stake in Nazara Technologies to 3.5%. Kamath was in discussions to increase his personal investment in the company.

On August 30, the company announced that it would seek board approval to raise capital via the issuance of equity shares or securities on a preferential basis. In July, the gaming giant also secured the board’s approval to raise up to INR 750 Cr and increase authorised share capital to INR 50 Cr from INR 30 Cr.

Earlier in August, Nazara pumped $500K into an Israeli game developer, Snax Games, to acquire the exclusive rights to publish the latter’s games in the Indian subcontinent and the Middle East on a revenue-sharing basis for the next five years. In May, the company said that it would increase its stake in Next Wave Multimedia to nearly 72%

The company’s consolidated net profit jumped to INR 61.4 Cr in the financial year 2022-23 (FY23), while revenue from operations soared 75% year-on-year (YoY) to INR 1,091 Cr during the period under review.