Highlights
Nazara Technologies has initiated a preferential issue of equity shares amounting to Rs 733.5 crore, pending approvals from shareholders and regulatory bodies. The board has sanctioned the issuance of up to 2,39,70,676 equity shares at a price of Rs 306 each, including a premium of Rs 304 per share, to six designated investors on a preferential basis.
Details of the Proposed Allottees
The identified allottees include Raymond Albaladejo Stauffer, Marc Sylvester Schutze, Maxime Loppin, Alexandre Paul Jean Noirot Cosson, Alexander Osou, and Hugo Rémy Gaston Blavin. Stauffer, appointed as Nazara’s chief executive officer earlier this week, is slated to receive the largest allocation of 1,90,67,969 shares, which will give him a 4.67% shareholding in the company.
The remaining investors will receive shares in the following manner: 28,32,273 shares, 10,03,628 shares, 7,10,946 shares, 2,66,895 shares, and 88,965 shares, respectively. Together, these six investors will hold a total of 5.87% stake in Nazara following the preferential issue.
Recent Financial Performance
This fundraising initiative follows Nazara’s announcement of a sluggish start to FY27. The company reported a 14% year-on-year decrease in operating revenue, dropping to Rs 429 crore in the June quarter from Rs 499 crore during the same period last year. Additionally, Nazara reported a net loss of Rs 82 crore compared to a net profit of Rs 51 crore for the equivalent quarter in the prior fiscal year. This loss included Rs 62 crore attributed to its share of losses from associates and a Rs 22 crore impairment charge.
Leadership Transition
The board also revealed a leadership change earlier this week. Founder Nitish Mittersain has stepped down from his role as chief executive officer but will continue as managing director, concentrating on the company’s long-term strategy and strategic partnerships, while Stauffer will officially assume the CEO position effective September 1.