The shares of the leading mobile gaming company gained 4.5% after Plutus Wealth Management LLP bought an additional stake in the company via a block deal on May 27th, 2024.
At 11:55 a.m., Nazara Technologies Ltd. shares were trading at ₹638.15 per share, up 3.84% on the National Stock Exchange from the previous close price. The company has a market capitalization of ₹4,884 crore.
According to the company report, Mitter Infotech LLP, a promoter of Nazara Technologies Limited (“the Company”), sold 4,884,000 equity shares, representing 6.38% of the issued share capital, to Plutus Wealth Management LLP through an on-market transaction in the block deal window of the stock exchange (“Block Trade”) on May 27, 2024.
As of the March quarter, Plutus Wealth Management LLP held a 6.63% stake in the company. According to the recent shareholding pattern, the company promoter holds a certain percent stake in the company, while Foreign Institutional Investors hold a 9.44% stake and Domestic Institutional Investors hold a 16.80% stake in the company.
“The block trade will provide liquidity for the promoters who have dedicated 25 years to the company’s growth. The promoters will retain control of the company, with Nitesh Mittersain continuing in his current role as CEO and joint managing director,” Nazara Tech said in a statement.
Earlier, ICICI Securities Limited had given a buy rating on the stock with a target price of ₹1,080 per share, which translates to an upside of 70% compared to the current market price.
Nazara Technologies is the largest India-based diversified gaming and sports media platform, with a presence in India and growing markets such as Africa and North America. It offers interactive gaming, eSports, and gamified early learning ecosystems.
The company’s operational revenue experienced a slight year-on-year decrease of 7.9%, dropping from ₹289 crore in Q4FY23 to ₹266 crore in Q4FY24. Furthermore, there was a notable 98% decline in net profit, falling from ₹9.37 crore to ₹0.18 crore.
Nazara Technologies Ltd shares have declined by 20% over the past six months but have gained 2% over the past year. Zerodha co-founder Nikhil Kamath’s two firms – Kamath Associates and NKSquared hold a stake of 1.97 percent and 2.29 percent stake in the company, respectively.
Written by Omkar Chitnis
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