Nazara's Rs 734 crore preferential issue sees CEO-designate Raymond Stauffer invest Rs 583 crore. Proceeds target acquisitions and AI-led game development. The board also increased authorized capital.
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Nazara Technologies' board approved a preferential issue of 2.39 crore equity shares at Rs 306 apiece, raising up to Rs 733.5 crore. The bulk of that capital, nearly Rs 583 crore, comes from Raymond Stauffer, who is set to become the company's chief executive officer on September 1. Stauffer currently leads Bluetile Games, one of the companies Nazara acquired.
The entire issue is subscribed by the founders and senior leadership of Bluetile and BestPlay Systems. Stauffer will receive 1.90 crore shares, giving him a 4.67% stake in Nazara after the issue. The investment comes from his own proceeds from the sale of Bluetile and BestPlay to Nazara.
"I'm reinvesting a substantial portion of the proceeds from Bluetile and BestPlay back into Nazara," Stauffer said in the exchange filing. "The next chapter for the Company is the most exciting yet. Nazara has the platform, balance sheet, and ambition to build a global gaming business. We also have a real opportunity to drive operating efficiencies."
Founder and Managing Director Nitish Mittersain called the leadership team's capital commitment "a powerful endorsement of the global platform we have built over the last few years."
The proceeds will go toward strategic acquisitions and growth initiatives, Nazara said. The company also plans to invest in AI-enabled game development and operating capabilities as part of its global gaming strategy.
Other investors in the round include Schutze Marc Sylvester, Maxime Loppin, Alexandre Paul Jean Noirot Cosson, Alexander Osou and Hugo Rémy Gaston Blavin.
Nazara also proposed to increase its authorized share capital from Rs 80 crore to Rs 90 crore, divided into 45 crore equity shares of Rs 2 each. The board will create an additional 5 crore shares that rank equally with existing equity shares. The issue price of Rs 306 per share includes a premium of Rs 304, the filing showed.
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