Nazara Technologies opens over 2% higher at Rs.775.95 and soon rose to Rs.824.45, hitting a new 52-week high.

The stock price rose after the company announced that its board approved to issue shares worth Rs 100 crore to Zerodha’s founders Nikhil and Nithin Kamath.

The Board is planning to consider and approve issue of over 14 lakh shares of the company, for cash, at an issue price of Rs 714/share, aggregating to an amount of Rs.100 crore, to Kamath Associates (Partnership firm represented by its partners Nikhil Kamath and Nithin Kamath) and NKSquared (Partnership firm represented by its partners Nikhil Kamath and Nithin Kamath).

Zerodha co-founder Nikhil Kamath was looking to increase his stake in the mobile gaming company and these shares will be locked in for a period of six months from the date of issue.

This infusion of fresh funds will be utilized to invest in funding requirements and growth objectives of the company including for making strategic acquisitions and investments, meeting growth and funding requirements.

Kamath already holds about 1% stake in the company and with this investment, he will now own about 3.5% in the company.