During Thursday’s trading session, the shares of India’s only publicly listed diversified gaming, esports and sports media company surged 5.5 percent to Rs. 1,019 on BSE, after the company announced acquiring a 15.86 percent stake in a leading esports community platform in India, GetStan Technologies Pte. Ltd. (STAN).
With a market capitalisation of Rs. 7,648.4 crores, at 12:50 pm., the shares of Nazara Technologies Limited were trading in the green at Rs. 999.25, up by 3.5 percent, as against its previous closing price of Rs. 965.45.
What’s the News:
According to the latest regulatory filings, Nazara Technologies Limited, through its wholly-owned subsidiary Nazara Dubai FZ, announced the acquisition of a 15.86 percent stake in GetStan Technologies Pte. Ltd.
Nazara will acquire this stake for nearly Rs. 18.4 crores (or $2.2 million) in an all-cash secondary transaction.
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STAN is a key player in the Indian esports and fan engagement sector. It has developed a mobile-first platform designed to connect gamers and provide content creators with the tools they need to succeed.
As of July 2024, STAN’s user base has exceeded 12 million, with more than 80 percent of users acquired through organic and referral channels. The platform has demonstrated strong monetization, with over 5 lakh paying users and a high 30-day retention rate exceeding 60 percent.
Previous News:
On 5th September, Nazara Technologies entered into a Memorandum of Understanding (MoU) with the Government of Telangana.
This strategic partnership aims to establish a pioneering AI Center of Excellence (AI CoE) focused on gaming and digital entertainment.
Through this initiative, Nazara seeks to position itself as a leader in AI-driven gaming and digital entertainment space, while also establishing Telangana as a global hub for AI innovation.
The Nazara AI CoE will be dedicated to advancing research, development, and innovation in various fields, including gaming, interactive media, gamified learning, and other digital content. It will utilise advanced technologies such as AI, VR/AR, blockchain, and Web 3.0.
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Financials:
The company experienced a marginal decline in its revenue from operations, showing a year-on-year fall of around 1.6 percent from Rs. 254 crores in Q1 FY24 to Rs. 250 crores in Q1 FY25.
However, its net profit increased during the same period from Rs. 21 crores to Rs. 24 crores, indicating a rise of nearly 14.3 percent YoY.
Shareholding Pattern:
As per the latest shareholding pattern, the Promoters hold a 10.05 percent stake in the company, Foreign Institutional Investors (FII) hold a 6.05 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 67.13 percent and 16.76 percent stake in Nazara Technologies, respectively.
As of June 2024, NKSquared and Kamath Associates, two firms of Zerodha co-founder Nikhil Kamath, hold a 2.29 percent stake and a 1.97 percent stake of Nazara Technologies, respectively.
Further, the ace investor Rekha Jhunjhunwala also holds an 8.37 percent stake in the company.
Stock Performance
In the previous six months, the stock has delivered positive returns of nearly 47.7 percent, as well as around 20.2 percent returns in one year. So far in 2024, the shares of Nazara Technologies have given about 16 percent of positive returns.
About the Company:
Incorporated in 1999, Nazara Technologies Limited is primarily engaged in the business of providing subscription/download of games/other content through a consumer base in India and worldwide and support services to group companies.
In esports, the company has India’s leading esports platform NODWIN Gaming and Sportskeeda/Pro Football Network in the sports media space.
Written by Shivani Singh
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