At a time when the online gaming industry is talking about the after-effects of the 28 per cent tax announced by the GST Council, Nazara Technologies has raised 100 crores from Zerodha founders Nikhil Kamath and Nithin Kamath.
The company's board passed a special resolution to issue 14,00,560 equity at Rs 718 per unit to two Kamath Associates and NKSquared, which are owned by the Kamath brothers. After acquiring the stakes in the company, the share of both firms will reach to 2.72 per cent.
The company said that the funds would be utilised to invest in funding requirements and growth objectives. Nazara Technology has a market cap of Rs 5,393.5 crore ($652 million), with a share price listed at Rs 815.05 today at 10 AM.
After the announcement of the new GST rate, hundreds of online gaming companies wrote letters to the government to reconsider its decision, and Nazara was also part of the group.
Speaking on the approval made by the board, Nitish Mittersain, CEO of Nazara Technologies, said, "Nikhil Kamath is the pioneering face of the country's tech arena, and in such a time the fund from the deal holds immense value for Nazara. The company wants to diversify its gaming platform in India, and the latest investment shows his confidence in the company."
The mobile gaming company recently invested in Israel-based game developer Snax Games. Apart from Kamath brothers, the Jhunjhunwala family also has a 9.96 per cent stake in the company.