Nazara Technologies shares surged nearly 10% on Monday after an investment from Zerodha co-founder Nikhil Kamath was approved by the board.

What Happened: The gaming and sports media platform said its board has approved the allotment of preferential shares, aiming to raise up to ₹100 crores from Kamath’s firms.

The company intends to issue 14 lakh equity shares with a face value of ₹4 each at a price of ₹714 per equity share, totalling ₹99 crore. The shares will be allotted proportionately to Kamath Associates and NKSquared.

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In accordance with regulations, these equity shares will be locked in for a period of 6 months from the date of issue.

The funds raised through this preferential allotment will be used to support the company’s funding requirements and growth objectives. This includes strategic acquisitions and investments. The investment will also facilitate meeting growth and funding requirements.

“Gaming in India is poised for strong growth in the years to come, and Nazara has built a well-diversified, profitable gaming platform well suited to take advantage of opportunities in the years ahead. We look forward to supporting Nitish and his team in achieving their growth aspirations for Nazara,” Nikhil Kamath, partner at Kamath Associates and NKSquared said in a statement.

It had previously been reported that Kamath was eyeing an investment in the Rekha Jhunjhunwala-backed gaming stock.

Price Action: Nazara Technologies share price was up 9.84% at ₹834.30 around noon on Monday.

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