New Delhi, Sep 7 (IANS): Online gaming major Nazara Technologies on Thursday announced that its board has approved an issue of equity shares with face value of Rs 4 each to raise up to Rs 410 crore from SBI Mutual Fund.

The company is proposing to issue 57,42,296 equity shares at a price of Rs 714 per share aggregating to Rs 4,099,999,344 to SBI Mutual Fund, by way of preferential issue on private placement basis.

The funds will be invested via three schemes of SBI Mutual Fund namely SBI Multicap Fund, SBI Magnum Global Fund and SBI Technology Opportunities Fund, said the gaming company.

“Respected investors backing Nazara makes me very proud of what we have built and I would like to extend a hearty welcome to SBI Mutual Fund,” said Vikash Mittersain, Chairman and MD of Nazara.

The issue of equity shares is being made in addition to the issuance of up to 14,00,560 fully paid-up equity shares approved by the Board in its meeting held on September 4.

Both together aggregate to an amount not exceeding Rs 510 crore.

Nazara Technologies share was around Rs 877.4 per share on Thursday morning. This infusion of fresh funds, said the company, will be utilised to invest in funding requirements and growth objectives of the company including for making strategic acquisitions and investments in various companies, meeting growth and funding requirements based on the business opportunities.

Earlier this week, the online gaming company Nazara Technologies issued up to 14 lakh equity shares of face value of Rs 4 each at a price of Rs 714 per equity share to Zerodha Cofounder Nikhil Kamath's companies.

The shares, worth nearly Rs 100 crore, were issued to Kamath Associates and NKSquared -- a partnership firm represented by its partners Nikhil and Nithin Kamath, the company said in a BSE filing.

The fresh funds will be utilised to invest in funding requirements and growth objectives of the company including for making strategic acquisitions and investments in various companies, Nazara Tech had said in a statement.