Nazara Technologies to use cash boost for organic growth
Nazara Technologies is looking at opportunities where companies are having revenues of at least in the Rs 100 crore ballpark range at a minimum level and north of that.
Following a successful fund raising, Nazara Technologies has a cash balance of around Rs 1,200-1,300 crore on its balance sheet and the company plans to use it for organic expansion, Nitish Mittersain, Joint MD & CEO of Nazara Technologies told CNBC-TV18.
He said, “We have always been very acquisitive. At this point in time, we see a lot of value opportunities where we believe can acquire businesses and significantly scale them both in terms of their revenue, margins, and profitability."
Mittersain said the company is looking for companies having revenues of at least around Rs 100 crore.
The gaming and sports media platform, Nazara Technologies, successfully raised more than Rs 500 crore from SBI Mutual Fund and Zerodha's Kamath brothers.
In September, Nazara Tech's board approved the issuance of 57.42 lakh shares valued at Rs 410 crore to SBI Mutual Fund at a rate of Rs 714 per share through a preferential allocation.
Out of the total Rs 410 crore, Rs 200 crore worth of shares will be allocated to SBI Multicap, Rs 120 crore to SBI Magnum Global Fund, and Rs 90 crore to SBI Tech Opportunities.
Additionally, 14 lakh shares worth Rs 100 crore were also allotted to Nikhil Kamath.
On the imposition of goods and services tax (GST) on real money gaming business, he said, “It is not a very large business for us and therefore, any impact on that business is relatively less material for our overall financial performance.”
“From October 1, the new GST applicability has come in place and we have complied with that,” he added.
He believes the business will take a short-term hit in terms of profitability.
“We are looking at this particular segment of our business as a glass half full rather than half empty kind of perspective,” he stated.
The company will look at more aggressive investments going forward in this segment.
For more details, watch the accompanying video
(Edited by : Shweta Mungre)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Over 50 onion farmers detained in Nashik ahead of PM Modi's visit
May 16, 2024 11:14 AM
Why Google CEO is cautiously optimistic about the election year
May 16, 2024 9:51 AM
Mark Mobius reveals how markets will react if NDA wins 400+ Lok Sabha seats
May 15, 2024 8:09 PM