Nazara Technologies' board approved to issue shares worth Rs 100 crore to Zerodha’s founders Nikhil and Nithin Kamath, the gaming company stated, sending the stock zooming. “We wish to inform you that the board considered and approved Issuance of up to 14,00,560 shares of the company, for cash, at an issue price of Rs 714 per Equity Share aggregating to an amount of Rs 99,99,99,840 to M/s Kamath Associates (Partnership firm represented by its partners Nikhil Kamath and Nithin Kamath) and M/s NKSquared (Partnership firm represented by its partners Nikhil Kamath and Nithin Kamath),” the company stated in a regulatory filing.

The latest investment takes Nikhil's stake in the company to about 3.5 percent from 1 percent. Speaking to CNBC TV-18, he said he plans to raise his stake further in the future. The news was cheered by investors. At 10:48 am, the stock was trading at Rs 846 on the National Stock Exchange, up 11.38 percent from the previous close. "Nikhil Kamath symbolizes success in India's tech arena, and this fundraiser holds immense value for us at Nazara as we continue to build a diversified gaming platform in India. Beyond the funds raised, his investment stands as a resounding vote of confidence in Nazara," said Nitish Mittersain, CEO of Nazara Technologies Moneycontrol, that Nikhil Kamath was looking to increase his stake in the mobile gaming company.

The development was first CNBC-TV18. The shares will be locked in for a period of six months from the date of issue. The funds will be used to meet the growth objectives of the company, including for strategic acquisitions, and also to meet growth as well as funding requirements, Nazara Tech said. Gaming in India was poised for strong growth in the years to come, and Nazara had built a well-diversified, profitable gaming platform well suited to take advantage of opportunities in the years ahead, Nikhil Kamath said.

This is the second time in two months that the Nazara opted to raise capital. In July, the company decided to raise funds through the issue of equity shares. The board of directors approved raising its authorized share capital from Rs 30 crore to Rs 50 crore.