Nazara Technologies shares shine in early trade after it decided to raise funds through the issue of equity shares.
The board of directors of Nazara on July 10 permitted raising its authorised share capital from Rs 30 crore to Rs 50 crore, subject to shareholders’ approval.

The board also permitted the raising of funds by issuing equity shares of the face value of Rs 4 each and/or any other equity-linked instruments/securities or any grouping for a collective amount not exceeding Rs 750 crore through one or more qualified institutional assignments or preferential allotment or through amalgamation or any other permissible mode.

The fundraising is subject to the receipt of the required approvals, counting the company’s shareholders’ approval and such other regulatory/government authority, and necessities, as applicable, including the constitution of a fundraising committee to device the proposed fundraising, endorsement of the notice to obtain shareholders’ approval in this regard.

Prabudas Lilladher’s July 6 report said the stock relics preferred pick in the media and entertainment space, anticipating sales/PAT CAGR of 27%/49% over FY23-25.

The broking house reserved the ‘buy’ rating with a DCF-based Target Price of Rs 804.
While the merging of WildWorks will aid Nazara’s topline growth of 26.1% YoY, we expect sequential development in EBITDA margin to 12%, said Prabudas Lilladher.

The brokerage house assumes Nodwin is on a robust growth as a recent fund infusion of ~Rs 2 billion can expand business inorganically. At the same time, the return of BGMI is a bit optimistic for Esports viewership.
At 9:24 am, Nazara Technologies was trading Rs 729.60, up Rs 3.30, or 0.45%, on the BSE.

The share moved a 52-week high of Rs 789 and a 52-week low of Rs 481.95 on September 12, 2022 and March 20, 2023, respectively. It trades 7.53% below its 52-week high and 51.38% above its 52-week low.