Nazara Files Q4 FY26 MA Report on INR 495 Cr Issue
Nazara Technologies filed its Q4 FY26 Monitoring Agency Report with stock exchanges. ICRA confirmed proceeds of INR 495.00 crore were utilized as per objects, with INR 430.04 crore deployed in investments.
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Nazara Technologies has submitted its Monitoring Agency (MA) Report for the quarter ended March 31, 2026, to BSE Limited and the National Stock Exchange of India Limited. The report was filed pursuant to Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Regulation 162A of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. ICRA Limited, appointed as the Monitoring Agency under an agreement dated January 29, 2025, prepared the report to track the utilisation of proceeds raised through the company's preferential issue.
Issue Overview
The preferential issue involved the allotment of 50,00,000 fully paid-up equity shares of face value INR 4.00 each, at a price of INR 990.00 per share (including a premium of INR 986.00 per share), raising gross proceeds of INR 495.00 crore. Issue-related expenses incurred up to Q4 FY26 stood at INR 0.38 crore. The funds are earmarked for two primary objects, as detailed below.
| Object | Original Cost (Rs. Crore) |
|---|---|
| Expansion and growth | Upto 371.25 |
| General Corporate Purposes & Preferential Issue expenses | Upto 123.75 |
| Total | 495.00 |
Utilisation of Proceeds
ICRA confirmed no deviation from the objects of the issue. The report noted that utilisation is in line with the disclosures made in the offer document, with no material deviation observed over earlier monitoring agency reports. Both objects remain on schedule, with a completion timeline of within 36 months from the date of receipt of funds, as per the EOGM notice dated February 13, 2025.
The following table summarises the progress in utilisation of issue proceeds as at the end of Q4 FY26:
| Object | Amount Proposed (Rs. Crore) | Utilised at Beginning of Quarter (Rs. Crore) | Utilised During Quarter (Rs. Crore) | Utilised at End of Quarter (Rs. Crore) | Unutilised Amount (Rs. Crore) |
|---|---|---|---|---|---|
| Expansion and growth | Upto 371.25 | 27.94 | 36.64 | 64.58 | 306.67 |
| General Corporate Purposes & Preferential Issue expenses | Upto 123.75 | 0.38 | - | 0.38 | 123.37 |
| Total | 495.00 | 28.32 | 36.64 | 64.96 | 430.04 |
ICRA noted that for the expansion and growth object, INR 0.55 crore of the proceeds was utilised as reimbursement for expenditure funded earlier through internal accruals. The General Corporate Purposes head includes issue expenses of INR 0.38 crore.
Deployment of Unutilised Proceeds
The unutilised proceeds of INR 430.04 crore have been deployed across a range of mutual funds and a fixed deposit. As certified by Nikunj Raichura & Associates, the total market value of these investments stood at INR 446.56 crore at the end of the quarter, reflecting earnings of INR 16.52 crore. The deployment details are as follows:
| Instrument | Amount Invested (Rs. Crore) | Earnings (Rs. Crore) | Return on Investment (%) | Market Value (Rs. Crore) |
|---|---|---|---|---|
| Mutual Fund – Aditya Birla Sun Life Arbitrage Fund Growth | 30.00 | 1.51 | 5.03% | 31.51 |
| Mutual Fund – Kotak Arbitrage Fund Direct Growth | 30.00 | 1.43 | 4.77% | 31.43 |
| Mutual Fund – Bandhan Money Manager Fund | 0.71 | 0.03 | 4.23% | 0.74 |
| Mutual Fund – Kotak Low Duration Fund | 32.48 | 1.61 | 4.96% | 34.09 |
| Mutual Fund – Bandhan Income Plus Arbitrage Active FoF | 39.81 | 1.43 | 3.59% | 41.24 |
| Mutual Fund – ICICI Prudential Income Plus Arbitrage Active FoF | 40.00 | 1.70 | 4.25% | 41.70 |
| Mutual Fund – ICICI Prudential Banking & PSU Debt Direct Growth | 40.00 | 1.64 | 4.10% | 41.64 |
| Mutual Fund – Invesco India Arbitrage Fund Direct Growth | 30.00 | 1.54 | 5.13% | 31.54 |
| Mutual Fund – TRUSTMF Corporate Bond Fund – Direct Plan Growth | 20.00 | 0.63 | 3.15% | 20.63 |
| Mutual Fund – Tata Arbitrage Fund Direct Growth | 30.00 | 1.46 | 4.87% | 31.46 |
| Mutual Fund – Tata Gilt Securities Fund Direct Growth | 40.00 | -0.82 | -2.05% | 39.18 |
| Mutual Fund – SBI Short Term Debt Fund Direct Growth | 25.00 | 1.00 | 4.00% | 26.00 |
| Mutual Fund – SBI Income Plus Arbitrage Active FoF Direct Growth | 25.00 | 0.87 | 3.48% | 25.87 |
| Fixed Deposit – IndusInd Bank (Maturity: 28-Sep-26) | 45.00 | 2.49 | 5.53% | 47.49 |
| Balance in Standard Chartered Bank | 2.04 | - | - | 2.04 |
| Total | 430.04 | 16.52 | 446.56 |
Compliance and No-Deviation Confirmation
ICRA confirmed that all utilisation is as per the disclosures in the offer document, the means of finance for the disclosed objects have not changed, and no unfavorable events affecting the viability of the objects were reported. Shareholder approval for material deviations was noted as not applicable, as no material deviations were observed. The report was signed by Parul Goyal Narang, Vice President & Head – Process Excellence, ICRA Limited, and submitted to Nazara Technologies on May 12, 2026. The filing to the stock exchanges was made by Arun Bhandari, Company Secretary and Compliance Officer of Nazara Technologies.
Historical Stock Returns for Nazara Technologies
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.41% | +0.40% | +5.73% | +3.69% | -8.46% | +23.72% |
With only INR 64.96 crore of the INR 495 crore raised deployed in the first two quarters, can Nazara Technologies realistically utilize the remaining INR 430.04 crore for expansion within the 36-month window ending early 2028?
What specific acquisitions, partnerships, or gaming verticals is Nazara Technologies likely targeting with the INR 306.67 crore earmarked for expansion and growth?
Given the Tata Gilt Securities Fund posting a negative return of -2.05%, how might rising interest rate volatility impact the overall yield on Nazara's unutilised proceeds portfolio going forward?
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