The largest mutual fund in the nation, SBI MF, has agreed to invest Rs 410 crore in Nazara Technologies by subscribing to its preferential allotment of stock through private placement, the company announced on Thursday.
The gaming and sports media platform said the shares carry a face value of Rs 4.
In a preferential issuance on a private placement basis, the business will issue 57,42,296 shares to SBI Mutual Fund for a total of Rs 409.99 crore at a price of Rs 714 per share.
The funds will be invested via three schemes of SBI Mutual Fund, namely SBI Multicap Fund, SBI Magnum Global Fund and SBI Technology Opportunities Fund, it said in a statement.
Earlier this week, Nithin and Nikhil Kamath of Zerodha invested Rs 100 crore in the company.
The company said the issue is an addition to the issuance of up to 14,00,560 fully paid-up shares approved by the board on September 4, both together aggregating to an amount not exceeding Rs 510 crore.
Nitish Mittersain, Chief Executive Officer of the company said that the fund will be utilised to invest in funding requirements and growth objectives, including for making strategic acquisitions and investments in various companies, among others.
On Thursday shares of Nazara Technologies Ltd at 15:15 p.m. trading 1% down at Rs. 875.15.
