A block deal involving 48.84 lakh shares of Nazara Technologies, representing a 6.38 percent stake in the company took place on the exchanges on May 27.
The company stated that it was promoter Mitter Infotech that sold the shares to Plutus Wealth Management through a block deal. Plutus Wealth Management has been a pre-IPO investor in Nazara Tech since 2020.
“Plutus Wealth Management LLP has been a long term investor in Nazara since the pre-IPO days and has actively participated in subsequent fund raises as well”, said Vikash Mittersain, promoter, Nazara Technologies.
Meanwhile, shares of the gaming company surged 4.5 percent after the block deal, the biggest jump in 19 weeks, with the stock hitting a 52-week high of Rs 642 on the NSE.
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After the block deal, Mitter Infotech's stake in the gaming company stands at over 10 percent, with the promoters having no plans to sell shares further. The stake sale was done to provide some liquidity to the promoters.
Nitish Mittersain, Founder of Nazara Tech also revealed in an interaction with CNBC-TV18 that the company's real money gaming segment can scale up to 30 percent of the overall business in the next 2-3 years if the company finds the right fit for any inorganic growth opportunities.
For that, Rajani stated that the company was already in talks with three-four core gaming companies, with plans to acquire one in FY25.
The gaming and sports media company reported a net profit of Rs 18 lakh last week, recording a a significant drop from Rs 9.4 crore in the year-ago period. The sharp decline in the bottomline was caused by a loss of Rs 16.87 crore from discontinued operations during the quarter due to result of write-offs in many of the company's legacy businesses including its real-money gaming business Halaplay.
Likewise, revenue fell 8 percent on year to Rs 266.2 crore for the quarter, down from Rs 289.3 crore in the year-ago period.
Going forward, however, Rajani expects growth to pick up from Q2 of FY25, with revenue rising significantly. He also anticipates a 100 basis points margin expansion in FY25.
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