Gaming stock owned by Nikhil Kamath surged nearly 5 percent to Rs.1,049.6 per share following an investment of Rs.982 crore to acquire a stake in India’s largest poker gaming platform, PokerBaazi.
Share Price Movement
In Friday’s trading session, the shares of Nazara Technology Ltd surged 2.7 percent to an intraday high of Rs.1,049.6 per share, up from its previous close of Rs.1,006.85 apiece. The price has since retreated and is currently trading at Rs.1,025.00 per share.
What is the news
Nazara Technologies Limited, a prominent publicly listed diversified gaming and sports media company in India, has announced the acquisition of a 47.7 percent stake in Moonshine Technology Private Limited (MTPL), the parent company of PokerBaazi, India’s leading online poker platform.
The acquisition is valued at Rs.832 crores through a secondary transaction. Furthermore, Nazara will invest an additional Rs.150 crores in Moonshine through compulsorily convertible preference shares.
Also Read: Tata group stock jumps after signing MoU to set up 200 EV fast charging stations
PokerBaazi, India’s largest online poker platform, generates over 85 percent of Moonshine’s net revenue, while SportsBaazi contributes 12 percent. As of May 2024, PokerBaazi had around 3,40,000 monthly active users.
Management Commentary
Commenting on the development, Nitish Mittersain, CEO of Nazara Technologies, said: “This investment in Moonshine Technology represents a significant step in our journey to strengthen Nazara’s position as India’s dominant diversified gaming platform. PokerBaazi has not only emerged as the undisputed leader in online poker gaming in India but has also set new standards in user engagement, innovation, and overall experience.”
Shareholding Pattern
As per the June 2024 shareholding pattern, the promoters of Nazara Technologies Limited hold a 10.05 percent stake, while Foreign Institutional Investors hold a 6.05 percent stake. Domestic Institutional Investors and Retail investors hold a stake of 16.76 percent and 67.13 percent, respectively in the company. Nikhil Kamath owns a 1.97 percent stake in Nazara Technologies Ltd.
Financials
For the quarter ended June 2024, Nazara Technologies Limited reported a net profit of Rs.24 crore, up 14.3 percent from Rs.21 crore in Q1 FY24. Revenue from operations was Rs.250 crore, a slight decline of 1.6 percent from Rs.254 crore in the same period.
Also Read: Midcap stock jumps 5% after signing licensing agreements for electrolyser manufacturing solutions
About the company
Nazara Technologies is India’s only listed gaming and esports company, with majority ownership of several leading gaming and esports brands with presence in India, the US, and other global markets.
Written by – Siddesh S Raskar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
