Anindita Nayak
Bhubaneswar, May 27
Mitter Infotech LLP, the promoter entity of the publicly listed gaming and media company Nazara Technologies, sold 48 lakh equity shares, amounting to a 6.38% stake in the company, to Plutus Wealth Management through a block deal.
“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 Nitish Mittersain continuing in his current role as CEO and joint managing director,” said Nazara in a stock exchange filing. Plutus Wealth has held an investment in Nazara Tech since 2020.
“This decision underscores our strong conviction in the phenomenal growth opportunity that the sector offers and our confidence in Nazara’s diversified product portfolio, talented team, and unique competitive position,” said Arpit Khandelwal, managing partner, Plutus Wealth.
Nazara Technologies reported a 43% increase in net profit for the March quarter of FY24, reaching Rs 17 crore. However, the operating revenue was Rs 266 crore, which is 8% lower than the previous year, the company announced in an exchange filing.
For the full year, revenue increased by 4.3% to Rs 1,138 crore, while profit after tax rose by 41% to Rs 89 crore.
In recent months, Nazara has raised Rs 760 crore from a slew of investors including Zerodha cofounder Nikhil Kamath, SBI Mutual Fund, ICICI Prudential Mutual Fund and Plutus. The gaming firm was setting aside about Rs 830 crore, or around $100 million, for mergers and acquisitions in India, Europe and North America.
Mittersain has said the company is in advance talks for five to six acquisitions, including two or three gaming studios for its new game publishing division, Nazara Publishing.