The Board of Nazara Technologies Limited approved a significant preferential allotment of up to 1,92,31,000 Warrants at an issue price of ₹260 per warrant, aggregating up to ₹500.006 crore. The warrants are convertible into one equity share each within 18 months. Additionally, the Board sanctioned an unsecured loan of up to ₹4 crore to its wholly-owned subsidiary, Smaaash Entertainment Private Limited. An Extraordinary General Meeting (EGM) is called for April 30, 2026, to seek shareholder approval for the warrant issuance.
Board Approves Major Capital Raise via Warrants
The Board of Directors of Nazara Technologies Limited, following its meeting on Monday, March 30, 2026, approved the proposal for the issuance of warrants on a preferential basis. The total number of securities proposed is up to 1,92,31,000 Warrants. Each warrant is convertible into one fully paid-up equity share of face value of ₹2.
The issue price is set at ₹260 per Warrant, which includes a premium of ₹258 per Warrant. This preferential issue aims to aggregate up to ₹500,00,60,000 (Five Hundred Crores Sixty Thousand Only) in cash consideration. This allotment is subject to shareholder approval and relevant statutory clearances.
Details of the Preferential Allotment
The allotment is made in accordance with Chapter V of the SEBI ICDR Regulations. The primary investors identified for this issue include:
- Riambel Capital PCC-RCC1: Allotment of up to 94,85,000 Warrants.
- S Gupta Family Investments Private Limited: Allotment of up to 40,00,000 Warrants.
- Plutus Investments and Holding Private Limited: Allotment of up to 38,46,000 Warrants.
- Classic Enterprises: Allotment of up to 10,00,000 Warrants.
- Founders Collective Fund: Allotment of up to 9,00,000 Warrants.
Assuming full conversion, the total post-preferential issue shareholding for these five investors collectively stands at 6.57% of the total equity.
Instrument Terms and Tenures
The tenure for these Warrants shall not exceed 18 (Eighteen) months from the date of allotment. The warrant holders possess the right to exercise this conversion in one or more tranches during this 18-month period. If conversion does not occur within the tenure, the entitlement expires, and the amount paid for the warrants shall stand forfeited.
Loan Sanctioned to Subsidiary
In a separate approval, the Board granted authorization for the granting of an unsecured loan not exceeding INR 4,00,00,000/- (Four Crores Only) to Smaaash Entertainment Private Limited, a wholly-owned subsidiary. This loan may be provided in one or more tranches, subject to the execution of definitive agreements.
Shareholder Approval via EGM
To facilitate the primary action—the preferential issuance of warrants—the Board has decided on convening an Extra-Ordinary General Meeting (EGM). The EGM is scheduled for Thursday, April 30, 2026, and will be conducted through video conferencing or other audio-visual means.
The Board meeting commenced at 3:45 p.m. and concluded at 4:10 p.m. on the date of the announcement.
Source: BSE
