The shares of this smallcap mobile gaming stock were in focus in Tuesday’s trading session after the company announced that an open offer was made to acquire 26 percent equity share capital of the company.
Price Action
With a market capitalization of Rs 7,823.80 crore, Nazara Technologies Ltd fell 4 percent in Tuesday’s trading session and made a low of Rs 910 per share compared to its previous closing price of Rs 948.7 per share. The stock reiterated from its day’s low and was trading at Rs 915.05 which is 3.5 percent lower than the previous closing price.
What Happened
Axana Estates LLP, Plutus Wealth Management LLP, along with Junomoneta Finsol Private Limited made an Open Offer to acquire equity shares in Nazara Technologies Ltd.
Subsequently, they are set to acquire up to 2.41 crore equity shares, or 26 percent of the company’s fully paid-up equity share capital at an open offer price of Rs 990 per equity share. The shares have a face value of Rs 4. The company is being acquired for a significant amount of equity and control as part of this initiative.
Plutus Wealth entities currently hold a 13.3 percent share in Nazara Technologies. After the open offer and preferential allotment of 5.4 percent additional equity, the total stake of Axana Estates and Plutus Wealth will increase to 27.2 percent.
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Company Overview
Nazara Technologies Ltd is India’s leading diversified gaming and sports media platform with a significant global presence across various markets such as North America and Africa. The company offers eSports, interactive gaming, gamified early learning ecosystems, and many more.
Business Segments
In the first half of FY25, the gaming division contributed to 36 percent of the total revenue and accounted for 66 percent of EBITDA, while the eSports sector brought in 57 percent of revenue and contributed to 28 percent to EBITDA.
Strategic Acquisitions
Nazara made a major investment in Moonshine Technologies, the parent company of PokerBaazi, increasing its stake in the skill-based gaming platform, and strengthened its position in NODWIN Gaming, a leader in eSports.
The company also acquired 100 percent ownership of Paper Boat Apps, the parent company of Kiddopia; the merger between Paper Boat and Nazara Technologies is expected to streamline cash flows and fuel further growth.
Written by Shwetha Sairam
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