Rakesh Jhunjhunwala holding raises Rs 510 cr through preferential issue

Nazara Technologies Limited has in the exchange filing that the board of the company has approved a preferential allotment of equity shares to raise up to Rs 510 crores. The company is proposing to issue 71,42,856 equity shares of face value of Rs. 4 each at a price of Rs. 714 per equity share.

The company has proposed to issue 14,00,560 equity shares of face value of Rs 4.00 each at a price of Rs 714 per equity share aggregating to Rs 999,999,840 proportionately to Kamath Associates & NKSquared. And 57,42,296 equity shares at a price of Rs 714 per equity share aggregating to Rs 4,099,999,344 to SBI Mutual Fund.

The funds raised will be used to invest in funding requirements and growth objectives of the company, including making strategic acquisitions and investments in various companies, meeting growth and funding requirements based on the business opportunities across the subsidiaries, associates, and joint ventures of the company, and meeting capital expenditures and working capital requirements.

Nazara Technologies is the leading India-based diversified gaming and sports media platform with a presence in India and across emerging and developed global markets such as Africa and North America, and offerings across interactive gaming, eSports and gamified early learning ecosystems.

In the recent quarter, Q1FY24, on a consolidated basis, the company reported a 31.36% rise in its net profit at Rs 20.86 crore for the quarter ended June 30, 2023, as compared to Rs 15.88 crore for the same quarter in the previous year. The total income of the company increased by 15.88% at Rs 266.17 crore for Q1FY24 as compared to Rs 229.70 crore for the corresponding quarter previous year.

Today, the stock opened at Rs 883.75, with a high and low of Rs 916.10 and Rs 871, respectively. The stock ended the trading session at Rs 875.85, down by 0.14%. In the last 6 months, the shares of the company have given more than 65% returns, and on a YTD basis, the stock has given about 40% returns.

The stock has a 52-week high of Rs 927.25 and a 52-week low of Rs 481.95. The company has a ROCE of 8.55% and an ROE of 3.79% with a market capitalisation of Rs 5,864 crore. It has shown impressive growth and investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.