This Rakesh Jhunjhunwala backed IT stock has rallied 40% so far this month.

Stock trading on a high after board approval for raising fresh capital of Rs 315 crore.  

Rakesh Jhunjhunwala-backed Nazara Technologies has given stellar returns to investors so far in October with a gain of 40.04%. Moreover, since its blockbuster public market debut, the stock has gained over 90%.

The stock has been buzzing on the bourses recently after its board approved raising Rs 315 crore from marquee investors via preferential allotment of fresh equity last week. According to the company, the infusion of fresh funds will be utilized to invest in growth initiatives of the company, as well as pursue strategic acquisitions in the various business verticals including gamified learning, freemium, skill-based real money gaming and esports.

The fundraising comes at a point of time when the Indian gaming industry has witnessed a boom with the pandemic-induced lockdown – which has massively accelerated the growth of Indian online gaming. According to a report by the Internet and Mobile Association of India (IAMAI), RedSeer and OnePlus mobile app downloads have surged by 50%, while user engagement rose 20%. Looking ahead, the industry is set to more than triple in size to USD 6-7 billion by 2025, from USD 1.8 billion in 2021.

Ace investor Rakesh Jhunjhunwala owns 32,94,310 shares, which amounts to around a 10.82% stake in the company, as per the shareholding pattern at the end of the June quarter.

Nazara is an India based diversified gaming and sports media platform with a presence in India and across emerging and developed global markets such as Africa and North America. The company is betting big on real-money gaming and is eyeing Rs 100 crore in revenues by the end of FY22.

At 1.40 pm on Monday, the stock of Nazara Technologies was trading at Rs 3,211, up by 2.79% or Rs 87.25 per share, against a 0.68% gain in the benchmark index. The 52-week high of the company was recorded at Rs 3,354.40, while its 52-week low is Rs 1,412.50 on BSE.