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Thursday, July 18, 2024

Shares of Nazara Tech surge 11% after learning that Nikhil Kamath, the founder of Zerodha, would raise Rs 100 Cr

<p>In Monday’s trading, shares of Nazara Technologies Ltd. significantly increased to reach their all-time high. The share price increased 10.53% to a 52-week high of Rs 839.15. Nikhil and Nithin Kamath, the founders of Zerodha, received shares worth Rs 100 crore after the business board authorized their issuance.<img decoding=”async” class=”alignnone wp-image-160309″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/09/theindiaprint.com-priyanka-chopra-turns-heads-in-sexy-wrap-around-dress-and-poses-for-fans-download-.jpg” alt=”theindiaprint.com priyanka chopra turns heads in sexy wrap around dress and poses for fans download” width=”1329″ height=”744″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/09/theindiaprint.com-priyanka-chopra-turns-heads-in-sexy-wrap-around-dress-and-poses-for-fans-download-.jpg 300w, https://www.theindiaprint.com/wp-content/uploads/2023/09/theindiaprint.com-priyanka-chopra-turns-heads-in-sexy-wrap-around-dress-and-poses-for-fans-download–150×84.jpg 150w” sizes=”(max-width: 1329px) 100vw, 1329px” title=”Shares of Nazara Tech surge 11% after learning that Nikhil Kamath, the founder of Zerodha, would raise Rs 100 Cr 3″></p>
<p>The company said in a regulatory filing that the board had “considered and approved” issuing up to 14,00,560 shares of the company for cash at an issue price of Rs 714 per equity share to M/s Kamath Associates (Partnership firm represented by its partners Nikhil Kamath and Nithin Kamath) and M/s NKSquared (Partnership firm represented by its partners Nikhil Kamath and Nithin Kamath).</p>
<p>“These equity shares will be locked in for a period of six months starting from the date of issuance in accordance with the Securities and Exchange Board of India (issuance of Capital and Disclosure Requirements), Regulations, 2018. According to the statement, “This infusion of new funds will be used to invest in funding requirements and growth objectives of the company, including for making strategic acquisitions and investments in various companies/body corporates/entities. It will also be used to meet growth and funding requirements based on the business opportunities across the subsidiaries, associates, and joint ventures of the company, as applicable.</p>
<p>After the announcement, Nikhil Kamath, co-founder of Zerodha, stated in an exclusive interview with CNBC-TV18 that he would want to raise his share in Nazara even further. According to Kamath, the total shareholding has now climbed from 1% to around 3.5%.</p>
<p>The equity shares will be offered at a price of Rs 714 each, which represents a reduction of 7.3% from Nazara’s closing price on Friday.</p>
<p>7,00,280 shares will be distributed equally to both organizations. After the preferential share issuance, Kamath Associates and NKSquared will each have a 1.36 percent ownership in Nazara Technologies.</p>
<p>At a time when the Indian gaming market is anticipated to increase from $2.8 billion in 2022 to $5 billion in 2025, rising at a CAGR of 28–30 percent, Kamath is placing a bet on the expanding gaming sector.</p>
<p>The World Economic Forum (WEF) claims that mobile devices are the main forces behind the growth of the gaming sector in India. The business has also been fueled by accessible internet and the advent of smartphones with faster processors and better gaming capabilities.</p>
<p>By 2025, there should be 500 million gamers in the nation, up from the 420 million estimated in 2022.</p>
<p>The gaming and sports firm Nazara has operations in India, the US, and other international markets.</p>
<p>Technical Outlook for Nazara Technologies</p>
<p>The counter was last observed trading above the 5-, 10-, 20-, 30-, 50-, 100-, 150-, and 200-day simple moving averages (SMAs) in terms of technical setup. The 14-day relative strength index (RSI) for the counter was 76.76. Oversold is defined as a number below 30, and overbought as a value beyond 70. In comparison to a negative price-to-book (P/B) value of 5.49, the company’s stock has a negative price-to-equity (P/E) ratio of 219.67.</p>
<p>According to Trendlyne data, the analyst target price for the stock is Rs 779, indicating a probable decline of 7%. With a one-year beta of 1.02, the stock has moderate volatility.</p>
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