Nazara to raise ₹733.5 crore through a preferential issue for expansion

Nazara plans to raise ₹733.5 crore via a preferential issue, with the funds earmarked for acquisitions, business expansion, intellectual property and AI-led game development

Gaming company Nazara Technologies on Thursday approved raising up to ₹733.5 crore through a preferential issue of equity shares to fund strategic acquisitions, expand its gaming businesses and invest in artificial intelligence (AI)-led game development capabilities, the firm said in a statement.

 

However, the proposal is subject to shareholder and regulatory approvals, it said.

 

The company's board approved the issue of up to 2.39 crore equity shares at ₹306 per share, taking the total fundraising to ₹733.5 crore. The issue will be subscribed entirely by the founders and senior leadership of Bluetile Games and BestPlay Systems, it said.

 

 

The development comes a day after Nazara announced that founder Nitish Mittersain will step down as chief executive officer. Raymond Albaladejo Stauffer, founder of Bluetile, will take over as CEO from September 1, subject to regulatory approvals.

Raymond Stauffer to invest ₹583 crore

According to the company, Stauffer will invest about ₹583.48 crore, making him one of Nazara's largest individual shareholders.

 

The company said the investment replaces additional stock-based incentives that would otherwise have accompanied his appointment as CEO.

 

The remaining amount will be invested by Schutze Marc Sylvester (₹86.67 crore), Maxime Loppin (₹30.71 crore), Alexandre Paul Jean Noirot-Cosson (₹21.75 crore), Alexander Osou (₹8.17 crore) and Hugo Rémy Gaston Blavin (₹2.72 crore), it said.

Funds earmarked for acquisitions and AI

Nazara said the proceeds will help strengthen its balance sheet and fund acquisitions, business expansion, investments in intellectual property, AI-led game development, and other growth opportunities.

 

Capital deployment will remain subject to the company's investment committee and board oversight.

 

Nitish Mittersain, founder, chief executive officer and managing director, said: "The decision by Raymond and the Bluetile and BestPlay leadership team to invest approximately ₹734 crore of their own capital into Nazara is a powerful endorsement of the global platform we have built over the last few years. As founder, it is deeply heartening to see Nazara recognised and respected across the global gaming industry."

 

Raymond Albaladejo Stauffer, chief executive officer of Bluetile, said: "I'm reinvesting a substantial portion of the proceeds from Bluetile and BestPlay back into Nazara. I'm doing this with a lot of optimism. The next chapter for the company is the most exciting yet. Nazara has the platform, balance sheet, and ambition to build a global gaming business. We also have a real opportunity to drive operating efficiencies. I'm excited to play a meaningful role in that. This reinvestment reflects my full conviction and confidence in the future of Nazara we are building together."