Nazara Tech raised Rs 410 crore from SBI Fund. This investment is aimed at capitalizing on the growing gaming industry in India, which is expected to reach a value of $5 billion by 2025.
Nazara Tech‘s board, a prominent gaming and sports media platform, approved the issuance of 57.42 lakh shares, totaling Rs 410 crore, to SBI Funds at the rate of Rs 714 per share through a preferential allocation. Among this allocation, Rs 200 crore worth of shares will be allocated to SBI Multicap, Rs 120 crore to SBI Magnum Global Fund, and Rs 90 crore to SBI Tech Opportunities.
It’s worth noting that the stock has experienced a 9.2 percent increase over the past five days and has surged by an impressive 42.08 percent in the year 2023. Additionally, this recent share allotment supplements the earlier issuance of 14 lakh shares, valued at Rs 100 crore, to Nikhil Kamath.
Earlier this week, Nazara Tech announced its intention to issue up to 14 lakh equity shares, each with a face value of Rs 4, to companies associated with Zerodha Co-Founder Nikhil Kamath.
Back in July, the gaming company disclosed its plan to raise funds of up to Rs 750 crore through equity share issuance, and with this latest move, they have successfully secured a total of Rs 540 crore in capital.
Looking ahead, the Indian gaming market exhibits significant growth potential, with projections indicating an expansion from $2.8 billion in 2022 to a staggering $5 billion by 2025, boasting an impressive Compound Annual Growth Rate (CAGR) of 28-30 percent.
According to the World Economic Forum (WEF), this surge is primarily driven by mobile devices, while factors like accessible internet connectivity and the availability of high-performance smartphones have further fueled the market. The number of gamers in India is expected to increase from 420 million in 2022 to a remarkable 500 million by 2025.
