SBI MF buys 8% in Nazara for ₹410 crore

livemint.com:

₹410 crore, which follows the 4 September ₹100 crore surprise investment by Nikhil and Nithin Kamath, the founders of India’s largest brokerage Zerodha Broking Ltd. Nazara Tech, which has staged a stellar rally this year and gained over 39% in the last three months, said the firm will issue 5.74 million fresh shares on preferential basis to three MF schemes of SBI Mutual Fund at ₹714 apiece. SBI MF had around ₹7.6 trillion in average assets under management for the June quarter as the country’s largest fund manager.

Kamath Associates and NKSquared (owned by Nikhil and Nithin Kamath) too were allotted 1.4 million shares on a preferential basis by Nazara Tech on 4 September. “Making India the gaming nation of the world has been a long-pursued dream for all of us at Nazara," said Nitish Mittersain, CEO and founder of Nazara Tech. Nazara Tech is the country’s only listed gaming firm, and the recent bets by celebrity entrepreneurs Kamaths and the country’s largest AMC give some indication of the growing fondness for gaming firms among investors globally, following Microsoft Corp.’s $75 billion ongoing acquisition bid for UK-based Activision Blizzard Inc.

Nazara Tech has seen a renewed momentum in its stock after the GST Council said last month that about plans to review its decision to impose a 28% tax on online gaming. The firm has a monopoly in the country through popular online games for kids and sports-oriented games such as cricket, tennis and carrom. In 2023, Nazara Tech has acquired US-based Pro Football Network Llc (an analysis website) that covers National Football League (NFL) and college football with 73.27% stake.