Nazara Technologies, the only listed gaming and sports media firm in India, has officially approved a plan to raise ₹500.01 crore through a preferential issue of warrants. The decision was finalized during a board meeting on Monday, March 30, as the company looks to build a war chest for its most ambitious global expansion to date.
The capital infusion comes at a critical time for Nazara, as it pivots toward AI-enabled gaming and attempts to offset a 24% year-on-year decline in its recent quarterly revenue.
1. Deal Structure & Pricing
The fundraise is being executed through the issuance of 1.92 crore (1,92,31,000) convertible warrants at a price of ₹260 each.
- Premium Valuation: The issue price of ₹260 is a significant 12% premium over Monday’s closing price of ₹232.35.
- Conversion Timeline: Each warrant is convertible into one equity share within 18 months from the date of allotment.
- Shareholding Impact: Upon full conversion, the new investors will collectively hold approximately 6.57% of the company’s expanded capital.
2. The Investor Lineup
The round is led by Riambel Capital PCC, a SEBI-registered Category I Foreign Portfolio Investor (FPI), which is taking the largest slice of the pie.
| Investor Name | Warrant Allocation | Impact |
| Riambel Capital PCC | 94,85,000 | Will become a major stakeholder with ~4.06%. |
| S Gupta Family Investments | 40,00,000 | Private investment support. |
| Plutus Investment & Holding | 38,46,000 | Promoter Group participation, signaling confidence. |
| Classic Enterprises | 10,00,000 | Strategic backing. |
| Founders Collective | 9,00,000 | Long-term alignment. |
3. Strategy: Funding the “AI Gaming” War
CEO Nitish Mittersain stated that this fresh capital is primarily earmarked for strategic acquisitions that were recently announced:
- Bluetile & BestPlay: A massive ₹918 crore ($100.3M) deal to acquire a 50% controlling stake in these Spanish social gaming platforms.
- AI-Native Gaming: The company intends to integrate AI across its portfolio—which includes Sportskeeda, Kiddopia, and World Cricket Championship—to create more scalable and personalized user experiences.
- Subsidiary Support: Alongside the warrant issue, the board also cleared an unsecured loan of ₹4 crore for its wholly-owned subsidiary, Smaaash Entertainment, to support its offline operations.
4. Next Steps for Shareholders
While the board has given its green light, the fundraise still requires the final nod from the company’s shareholders.
- The EGM: An Extra-Ordinary General Meeting (EGM) has been scheduled for April 30, 2026, where the formal vote will take place.
- Regulatory Compliance: The issue must adhere to SEBI’s ICDR Regulations, 2018, and the Companies Act, 2013.
