Nazara Technologies shares jump 12% to hit 52-week high; here's why
Nazara Technologies share price: "The company is proposing to issue 14,00,560 equity shares of face value of Rs 4 each at a price of Rs 714 per equity share aggregating to Rs 999,999,840 (Issue) proportionately to M/s Kamath Associates & M/s NKSquared," Nazara mentioned.
- Sep 4, 2023,
- Updated Sep 4, 2023 11:04 AM IST
Shares of Nazara Technologies Ltd rose sharply in Monday's deals to touch their one-year high level. The stock jumped 12.46 per cent to hit a 52-week high of Rs 853.80. Today's upward move came after the company approved preferential allotment of equity shares to raise up to Rs 100 crore. The step is subject to shareholder and regulatory/statutory authorities approvals, it added.
"The company is proposing to issue 14,00,560 equity shares of face value of Rs 4 each at a price of Rs 714 per equity share aggregating to Rs 999,999,840 (Issue) proportionately to M/s Kamath Associates & M/s NKSquared," Nazara mentioned.
"As per the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements), Regulations, 2018, these equity shares will be locked in for a period of six months from the date of issue. This infusion of fresh funds will be utilized to invest in funding requirements and growth objectives of the company including for making strategic acquisitions and investments in various companies/body corporates/entities, meeting growth and funding requirements based on the business opportunities across the subsidiaries/associates/joint venture of the company, as applicable, through investment in subsidiaries/associates/joint venture of the company," it further stated.
Nitish Mittersain, CEO of Nazara Tech, said, "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."
Commenting on the investment in Nazara, Nikhil Kamath, Partner of Kamath Associates & NKSquared, said, "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."
Brokerage Prabhudas Lilladher said, "While preferential allotment will lead to an equity dilution of 2.1 per cent, Nazara operates in a hyper growth gaming industry where scalability is of prime importance which may lead to dilution at frequent intervals at least in the initial stages. We believe the funds might be deployed to expand presence in either Freemium or Gamified Early Learning segment as Real Money Gaming is facing regulatory hurdles post levy of 28 per cent GST (goods and services tax) on full bet value whereas e-sports business is well funded post recent fund raise of Rs 200 crore."
On technical setup, the counter was last seen trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 76.76. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 219.67 against a negative price-to-book (P/B) value of 5.49.
The scrip has an analyst target price of Rs 779, Trendlyne data showed, suggesting a potential downside of 7 per cent. It has a one-year beta of 1.02, indicating average volatility on the counter.
Nazara is a gaming and sports company with presence in India, US and other global markets.
(Disclaimer: Recommendations provided in this article and/ or any reports attached or relied on herein are authored by an external party. The views expressed herein are that of the respective authors/ entities, and do not represent the views of Business Today (BT). BT does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. BT further urges you to consult your financial adviser and seek independent advice regarding the contents herein, including stock investments, mutual funds, general market risks etc.)
Shares of Nazara Technologies Ltd rose sharply in Monday's deals to touch their one-year high level. The stock jumped 12.46 per cent to hit a 52-week high of Rs 853.80. Today's upward move came after the company approved preferential allotment of equity shares to raise up to Rs 100 crore. The step is subject to shareholder and regulatory/statutory authorities approvals, it added.
"The company is proposing to issue 14,00,560 equity shares of face value of Rs 4 each at a price of Rs 714 per equity share aggregating to Rs 999,999,840 (Issue) proportionately to M/s Kamath Associates & M/s NKSquared," Nazara mentioned.
"As per the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements), Regulations, 2018, these equity shares will be locked in for a period of six months from the date of issue. This infusion of fresh funds will be utilized to invest in funding requirements and growth objectives of the company including for making strategic acquisitions and investments in various companies/body corporates/entities, meeting growth and funding requirements based on the business opportunities across the subsidiaries/associates/joint venture of the company, as applicable, through investment in subsidiaries/associates/joint venture of the company," it further stated.
Nitish Mittersain, CEO of Nazara Tech, said, "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."
Commenting on the investment in Nazara, Nikhil Kamath, Partner of Kamath Associates & NKSquared, said, "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."
Brokerage Prabhudas Lilladher said, "While preferential allotment will lead to an equity dilution of 2.1 per cent, Nazara operates in a hyper growth gaming industry where scalability is of prime importance which may lead to dilution at frequent intervals at least in the initial stages. We believe the funds might be deployed to expand presence in either Freemium or Gamified Early Learning segment as Real Money Gaming is facing regulatory hurdles post levy of 28 per cent GST (goods and services tax) on full bet value whereas e-sports business is well funded post recent fund raise of Rs 200 crore."
On technical setup, the counter was last seen trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 76.76. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 219.67 against a negative price-to-book (P/B) value of 5.49.
The scrip has an analyst target price of Rs 779, Trendlyne data showed, suggesting a potential downside of 7 per cent. It has a one-year beta of 1.02, indicating average volatility on the counter.
Nazara is a gaming and sports company with presence in India, US and other global markets.
(Disclaimer: Recommendations provided in this article and/ or any reports attached or relied on herein are authored by an external party. The views expressed herein are that of the respective authors/ entities, and do not represent the views of Business Today (BT). BT does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. BT further urges you to consult your financial adviser and seek independent advice regarding the contents herein, including stock investments, mutual funds, general market risks etc.)