Nazara Technologies to Raise ₹500 Cr via Preferential Issue

Nazara Technologies’ board has approved raising over ₹500 Cr through a preferential issue of warrants, according to a recent announcement. The gaming company plans to issue up to 1.92 Cr warrants at ₹260 each, representing a 12% premium over the closing price of ₹232.35.

The capital raise will involve participation from promoter Plutus Wealth Management, along with investors such as Riambel Capital, S Gupta Family Investments, Classic Enterprises, and Founders Collective.

The proceeds from this fundraise are earmarked for strategic acquisitions, including the recently announced Bluetile and BestPlay transactions, as well as to accelerate growth across Nazara’s existing business verticals. Last week, Nazara disclosed definitive agreements to acquire approximately 50% stakes in Spanish casual gaming studio Bluetile Games and player engagement platform BestPlay Systems for a total of $100.3 Mn.

Nazara intends to utilize the acquisitions to establish a scalable platform for AI-enabled game development, distribution, and publishing across its global gaming portfolio.

According to Nazara MD and CEO Nitish Mittersain, the ₹500 Cr fundraise comes at an important phase in Nazara’s journey as it executes on its most ambitious growth initiatives, including the Bluetile and BestPlay acquisition. In addition to powering the acquisitions, Nazara also plans to grant a loan of ₹4 Cr to its subsidiary Smaash Entertainment.

The fundraise follows Morgan Stanley’s acquisition of a stake worth approximately ₹69.2 Cr in Nazara through a block deal. Morgan Stanley Asia Singapore purchased 28.85 lakh shares at ₹239.80 apiece, briefly pushing Nazara’s stock up nearly 4% intraday.

On the financial front, Nazara returned to profitability in Q3 FY26 with a net profit of ₹8.8 Cr, recovering from a loss in the previous quarter. However, revenue fell 24% YoY to ₹406 Cr. Shares of Nazara ended today’s trading session 3.25% lower at ₹232.35.