Rekha Jhunjhunwala portfolio's stock: This Gaming Company Secures Rs 495 Crore Investment from Axana Estates LLP!
The company's stock price has given 13.28 per cent returns in last one week.
Shares of Nazara Technologies Limited surged by in the 5 per cent on Monday due to a significant development, as mentioned below.
Nazara Technologies Limited has announced a strategic partnership with Axana Estates LLP, led by Arpit Khandelwal, Founder & Managing Partner of Plutus Wealth Management LLP, and Mithun Sacheti, Founder of Caratlane. The transaction includes a significant investment of Rs 495 crores, marking a crucial step in Nazara’s journey toward becoming a global leader in gaming and digital entertainment.
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Key Details of the Transaction
Axana Estates LLP will acquire approximately 5.40 per cent stake in Nazara Technologies through a preferential issue of equity shares priced at Rs 990 per share. This investment, amounting to Rs 495 crores, has received approval from the company’s board and is pending shareholder and regulatory clearances.
Plutus Wealth Management LLP, Axana Estates LLP, and Persons Acting in Concert (PACs) will also launch a public open offer to acquire an additional 26 per cent stake in Nazara Technologies.
Post-transaction, assuming full acceptance of the open offer, the combined shareholding of the acquirers, PACs, and the existing promoters, Vikash and Nitish Mittersain, along with the promoter group, is expected to rise to approximately 61.5 per cent of the company.
Strategic Benefits and Leadership Continuity
This partnership brings together complementary expertise and resources, creating a powerful alliance enabling Nazara to access new markets, leverage cutting-edge technologies, and enhance operational efficiencies. Nazara will continue to operate independently under the leadership of its Chairman & Managing Director Vikash Mittersain along with Jt. Managing Director & CEO Nitish Mittersain. The investment will be directed toward accelerating organic growth, strategic acquisitions, and expansion into new markets.
Nitish Mittersain, Jt. Managing Director and CEO of Nazara Technologies, said: “Nazara is set for global growth, and we are excited to partner with Arpit & Mithun, who share our vision. Their belief in our potential and expertise will help us scale new heights, positioning Nazara as a unique global gaming company from India.”
Arpit Khandelwal, Founder & Managing Partner of Plutus Wealth Management LLP, added: “We are excited to deepen our investment in Nazara, a company with a proven track record of capitalizing on global gaming trends. This consolidation of ownership will provide growth capital and bring strategic expertise to support Nazara, its promoters & team in the journey of becoming a worldleading gaming and entertainment brand.”
Mithun Sacheti, Designated Partner of Axana Estates LLP & Founder of Caratlane said: “Gaming is the new consumer play, blending entertainment, technology, and community to create unmatched engagement. It has become a powerful platform to connect with audiences and shape consumer behaviour in real time. We are thrilled to partner with Nazara to unlock its immense potential and drive global growth and look forward to unlocking the Company’s full potential in collaboration with its exceptional management team.”
In addition to this strategic partnership, Nazara is bolstering its mobile gaming portfolio with the acquisition of two popular game IPs from ZeptoLab.
The Nazara board today approved the acquisition of the intellectual property rights of two popular mobile gaming titles, ‘CATS: Crash Arena’ and ‘King of Thieves’ from Barcelona-based game developer and publisher ZeptoLab for a total consideration of USD 7.7 million (Rs 67 crore). Through this acquisition, Nazara will own the game IPs and will also publish the games under the “Nazara Publishing” banner further strengthening its position in the global mobile gaming market.
Nazara Technologies Limited currently has a market capitalisation of Rs 9,150 crore, with its stock priced at Rs 1,070. The stock has a 52-week high and low of Rs 1,124 and Rs 591, respectively. It trades at a price-to-earnings (P/E) ratio of 110, whereas the industry price-to-earnings (P/E) ratio is 53.2x, indicating stock trading at a premium, with a book value of Rs 247. The company's stock price has given 13.28 per cent returns in last one week.
Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.