Gaming and sports media company Nazara Technologies has entered into a share subscription agreement with SBI Funds Management, under its SBI Innovative Opportunities Fund, to raise Rs 220 crore. This is part of a larger Rs 900 crore fundraising initiative announced last month.

Under the deal, Nazara will issue 23.5 lakh shares to the fund at a price of Rs 954.27 per share, raising a total of Rs 219.99 crore.

Nazara Technologies will issue 94.3 lakh fully paid shares at the issue price of Rs 954.27 per share. The shares are being offered to identified non-promoter investors including SBI Innovative Opportunities Fund, Junomoneta Finsol Private Limited, Caratlane founder Mithun Sacheti, and others.

In September, Nikhil Kamath-backed Nazara had announced that it would raise around Rs 900 crore through a preferential issue of shares. In total, the company plans to issue 94.3 lakh fully paid shares to select non-promoter investors. These include SBI Innovative Opportunities Fund, Junomoneta Finsol Private Limited, Caratlane founder Mithun Sacheti, and others.

Part of the funds will be used to acquire an additional 19.35% stake in Absolute Sports Private Limited, the subsidiary of the gaming company that owns the popular sports platform Sportskeeda.

Nazara will acquire 41,173 shares from Absolute Sports’ existing shareholders Porush Jain and Srinivas Cuddapah for a total consideration of Rs 145.47 crore.

This acquisition will be partially paid in cash (Rs 72.73 crore) and through an exchange of Nazara shares (Rs 72.73 crore). At the end of the operation, Nazara will hold 91.03% of the capital of Absolute.