NEW DELHI, June 5: Gaming and sports media firm Nazara Technologies announced on Friday that its board of directors has approved the allotment of over 1.82 crore warrants on a preferential basis to select investors. This move is expected to bolster the company’s financial standing.
Information was available with The Chenab Times that the warrants, which are convertible into equity shares, were issued at a price of ₹260 per warrant. This price includes a significant premium of ₹258 per share, reflecting the company’s valuation and investor confidence.
As part of the allotment, Nazara Technologies has received an upfront subscription amount totaling 25 percent of the warrant issue price, aggregating to ₹118.50 crore. This substantial upfront payment provides immediate capital for the company’s operations and strategic initiatives.
According to the regulatory filing, Riambel Capital PCC-RCC1 emerged as the largest allottee, securing 94.85 lakh warrants. Riambel Capital made an upfront payment of ₹61.65 crore for its allocation.
Further allocations included S Gupta Family Enterprises Pvt Ltd, which was allotted 40 lakh warrants for an upfront payment of ₹26 crore. Founders Collective Fund received 9 lakh warrants, contributing ₹5.85 crore to the upfront sum.
Plutus Investments and Holding Pvt Ltd was also a significant allottee, receiving 38.46 lakh warrants. Plutus made an upfront payment of ₹24.99 crore for these warrants.
Nazara Technologies highlighted that Plutus Investments and Holding Pvt Ltd will be recognized as a member of the promoter group, effective from the date of this allotment. This classification is due to Plutus’s association with certain existing promoters of the company.
The warrant holders have the right to convert their warrants into fully paid-up equity shares. This conversion can occur in one or more tranches within a period of 18 months from the date of allotment. The conversion is contingent upon the payment of the remaining 75 percent of the issue price by the warrant holders.
The total number of warrants allotted in this round was slightly less than initially proposed. The company noted in its filing that one of the intended allottees, who was slated to receive 10,00,000 warrants valued at ₹26,00,00,000, became ineligible prior to the allotment date. This ineligibility was determined in accordance with Chapter V of the SEBI ICDR Regulations, which govern the issuance and regulation of securities.
The Chenab Times News Desk