Zerodha invests Rs 100 crore in gaming firm Nazara Tech; Nikhil Kamath's stake in the firm rises to 3.5%

Stock broker company Zerodha has invested Rs 100 crore in online gaming company Nazara Technologies via an equity share issue. Nazara Technologies' board has approved about 14 lakh share issuance worth Rs 100 crore to Zerodha’s founders Nikhil and Nithin Kamath.

“We wish to inform you that the board … considered and approved Issuance of up to 14,00,560 shares of the company, for cash, at an issue price of Rs 714 per Equity Share aggregating to an amount of Rs 99,99,99,840 to M/s Kamath Associates (Partnership firm represented by its partners Nikhil Kamath and Nithin Kamath) and M/s NKSquared (Partnership firm represented by its partners Nikhil Kamath and Nithin Kamath),” the company said in a regulatory filing.

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With this, Nikhil's stake in the company rises to 3.5% from 1%. In an interview to CNBC-TV18 Nikhil has expressed optimism for further raising his stake in Nazara.

“Gaming in India is poised for strong growth in the years to come and Nazara has built a well-diversified, profitable gaming platform well suited to take advantage of opportunities in the years ahead. We look forward to supporting Nitish and his team in achieving their growth aspirations for Nazara,” Kamath said, in a statement.

Meanwhile, Nazara Tech's CEO has said that this investment stands as a resounding vote of confidence in Nazara.

"Nikhil Kamath symbolizes success in India's tech arena, and this fund raise holds immense value for us at Nazara as we continue to build a diversified gaming platform in India. Beyond the funds raised, his investment stands as a resounding vote of confidence in Nazara," said Nitish Mittersain, CEO, Nazara Technologies.

Meanwhile, the shares of Nazara Technologies hit a 52-week high of Rs 853.25, as they surged 12% on the BSE in Monday's intra-day trade