Nazara Tech Preferential Issue: ₹733.5 Cr at ₹306 (2026)

Board clears ₹733.5 crore equity fundraise

Nazara Technologies Limited has approved a preferential issue of equity shares to raise about ₹733.5 crore. The company’s board cleared the proposal on August 6, 2026, positioning the move as a balance-sheet strengthening exercise and a funding pool for strategic acquisitions.

The capital raise comes at a time when Nazara has reported sequential operational growth but also posted a net loss in Q1 FY27, alongside a major CEO transition, as noted in the disclosure. The board’s decision signals a renewed focus on ensuring adequate capital availability for the company’s stated inorganic growth agenda.

Key terms: up to 2.397 crore shares at ₹306 each

Under the approved plan, Nazara will issue up to 2,39,70,676 equity shares on a preferential basis. The issue price has been set at ₹306 per share, taking the aggregate fundraising size to approximately ₹733.5 crore.

A preferential issue typically allows a company to raise capital from identified investors faster than a public issue, subject to shareholder approvals and applicable regulatory processes. In this case, the company has described the fundraising as supporting strategic acquisitions and strengthening its financial position.

Authorized share capital to rise to enable the issue

Alongside the fundraising approval, Nazara’s board has also approved an increase in authorized share capital. The authorized share capital will increase from ₹80 crore to ₹90 crore to facilitate the proposed issuance.

This step is procedural but important, as an increase in authorized share capital is often necessary before issuing additional shares beyond the existing limit.

Earlier communication referenced a board meeting and trading window closure

Nazara had separately indicated it would convene a Board of Directors meeting on Thursday, August 06, 2026, to consider raising capital through preferential allotment. The proposed transaction was described broadly as a potential issuance of equity shares, convertible instruments, or other eligible securities, to one or more persons.

The company also stated that the trading window for designated persons, their immediate relatives, and connected persons remained closed until 48 hours after the announcement of the board meeting’s outcome.

March 2026: preferential warrant issue approved at ₹260

The August 2026 equity issuance sits alongside a separate capital-raising effort approved earlier in the year. Nazara’s board had approved raising up to ₹500.006 crore via a preferential issue of 1,92,31,000 convertible warrants at ₹260 per warrant.

Each warrant is convertible into one fully paid-up equity share of face value ₹2. The conversion period specified was within 18 months from the date of allotment, and conversion could be done in one or more tranches upon payment of the remaining amount.

Investors and allotment details disclosed for the warrant issue

For the 1,92,31,000 warrant proposal, the filing listed five identified investors and the maximum number of warrants proposed to be allotted to each:

• Riambel Capital PCC-RCC1: 94,85,000 warrants
• S Gupta Family Investments Private Limited: 40,00,000 warrants
• Plutus Investments and Holding Private Limited: 38,46,000 warrants
• Classic Enterprises: 10,00,000 warrants
• Founders Collective Fund: 9,00,000 warrants

A later update also stated the board approved allotment of over 1.82 crore warrants at ₹260 apiece, raising over ₹474 crore, with participation from Fidelis Global (Riambel Capital PCC-RCC1), S Gupta Family Enterprises, promoter Plutus Investments, and Founders Collective Fund.

Upfront warrant money received and conversion mechanics

Nazara disclosed it received ₹118.50 crore upfront as the initial 25% warrant subscription amount from the named investors. Riambel Capital PCC-RCC1 was stated to be the largest allottee, receiving 94.85 lakh warrants, with an upfront payment of ₹61.65 crore.

As per the filing, warrant holders are entitled to convert warrants into fully paid-up equity shares within 18 months from the date of allotment, upon payment of the remaining 75% of the issue price.

Shareholder approvals: EGM date change also disclosed

For the warrant issue, Nazara had announced an Extraordinary General Meeting (EGM) to seek shareholder approval. In a later update, the company informed the exchange that the EGM date was amended from Thursday, April 30, 2026, to Friday, May 01, 2026, with other details remaining unchanged.

Such date changes are typically communicated through exchange filings to ensure clarity on the approval process for preferential issues.

Summary table: equity issue vs warrant issue

Why this matters for investors tracking Nazara

The ₹733.5 crore preferential equity issue is a material corporate action that can influence capital structure and funding capacity. Nazara has linked the capital infusion to strengthening the balance sheet and supporting strategic acquisitions, which aligns with its earlier stated use of proceeds for acquisitions such as the recently announced Bluetile and BestPlay transactions.

Separately, the warrant fundraising framework highlights how Nazara has been using preferential instruments to bring in capital with staged payments and conversion flexibility. For market participants, the sequence of equity and warrant actions also underscores the importance of monitoring shareholder approvals, regulatory clearances, and the final allotment and listing steps communicated through exchange filings.

Closing notes and next steps to watch

Nazara’s August 6, 2026 board approval sets the stage for the preferential equity issuance at ₹306 per share, while the company continues to update markets on approvals and process milestones. Investors will typically track shareholder approvals and regulatory clearances, as well as subsequent filings on allotment and listing permissions, as the transaction progresses.