Nazara Technologies Raises Up to Rs 500 Crore

Gaming company Nazara Technologies has approved a preferential issue of warrants to raise up to Rs 500 crore, as stated in its regulatory filing with stock exchanges. The enterprise plans to issue 1.92 crore warrants at a price of Rs 260 each, with each warrant convertible into one equity share within 18 months.

Investor Participation in the Fundraise

This funding round will attract investment from Riambel Capital PCC, S Gupta Family Investments, Plutus Investments and Holding, Classic Enterprises, and Founders Collective. The issue price represents a premium over the current market price, which highlights the confidence investors have in the company’s growth strategy.

Use of Proceeds

Nazara intends to utilise the funds to facilitate strategic acquisitions, including Bluetile and BestPlay, and to enhance its existing business segments. Notably, participation from the promoter group reassures ongoing alignment with the company’s long-term objectives.

Recent Acquisitions

The fundraising initiative follows Nazara’s recent announcement regarding the acquisition of Spain-based Bluetile Games and BestPlay Systems, aimed at enhancing its foothold in the global casual and social gaming market. The company has agreed to purchase an initial 50% stake in both firms for approximately $100.3 million, with strategies in place for complete ownership over time.

Stake Expectations After Conversion

Upon the conversion of these warrants, investors are anticipated to possess around 6.57% of the company’s stake, contingent on full conversion.

Financial Support for Subsidiary

Additionally, Nazara has approved an unsecured loan of up to Rs 4 crore to its wholly owned subsidiary, Smaaash Entertainment. This amount will be disbursed in one or more tranches. The company will seek shareholder approval for this fundraising during an extraordinary general meeting slated for April 30, 2026.

Muffled Financial Performance

In parallel, Nazara has reported a subdued financial performance in recent quarters. Its operating revenue has fallen by 24% year on year to Rs 406 crore in Q3 FY26, while profit has decreased by 36% to Rs 9 crore.