Nazara approves Rs 733.5 Cr issue, CEO to get 4.67%
Nazara's board has approved a preferential share issue worth up to Rs 733.5 crore at Rs 306 apiece, with incoming chief executive Raymond Albaladejo Stauffer taking a 4.67 percent stake.
- Nazara's board approved a preferential issue of up to 2,39,70,676 shares at Rs 306 each, worth up to Rs 733.5 crore.
- Incoming CEO Raymond Albaladejo Stauffer takes the largest allotment at 1,90,67,969 shares, a 4.67 percent stake.
- All six allottees together will own 5.87 percent of Nazara after the issue.
- Q1 FY27 operating revenue fell 14 percent to Rs 429 crore, with a Rs 82 crore net loss against a Rs 51 crore profit.
Nazara Technologies has approved a preferential issue of equity shares worth up to Rs 733.5 crore. The board cleared the issuance of up to 2,39,70,676 equity shares at an issue price of Rs 306 apiece, including a premium of Rs 304 per share. The proposal still awaits shareholder and regulatory approvals.
The allotment is where the story sits. Raymond Albaladejo Stauffer, appointed chief executive officer earlier this week and taking the role from September 1, receives the largest allotment at 1,90,67,969 shares, giving him a 4.67 percent stake in the company after allotment. Five other investors receive 28,32,273 shares, 10,03,628 shares, 7,10,946 shares, 2,66,895 shares and 88,965 shares respectively. Collectively the six will own 5.87 percent of Nazara once the issue completes. Founder Nitish Mittersain moves from chief executive to managing director, focusing on long term strategy and partnerships.
The backdrop is a weak quarter. Nazara’s Q1 FY27 operating revenue fell 14 percent year on year to Rs 429 crore from Rs 499 crore. The company reported a net loss of Rs 82 crore against a Rs 51 crore profit a year earlier, a swing that includes Rs 62 crore in associate losses and Rs 22 crore of impairment charges.
Read the structure rather than the headline figure. The incoming chief executive is not being handed equity. He is buying it at Rs 306 a share alongside five co-investors, in the same week the company reported falling revenue and a swing into loss. That is a cash commitment on the way in, not a grant on the way out. Nazara is funding a turnaround and its new operator’s stake in one transaction.
The transferable point for founders bringing in outside leadership is that how a senior hire takes equity tells you more than the title does. Options vest on tenure and cost the hire nothing if the plan fails. Bought shares cost real money on day one, which changes what the person optimises for. If you are handing an operator meaningful control, the question worth asking is whether they will write a cheque for the same story they are asking your board to believe.
Zane’s analysis draws on original reporting by Entrackr. Read the original report.