Nazara Technologies stock gains 4% on $2.2 mn investment in gaming startup Stan

Nazara Tech shares have been on a decent run, rising 14 percent in three months.

Shares of Nazara Technologies Limited surged almost 5 percent to Rs 1,008 in early trade on September 12 after the company announced its subsidiary, Nazara Dubai, has purchased a 15.86 percent stake in gaming community startup Stan for $2.2 million (Rs 18.4 crore) in cash through a secondary transaction from existing shareholders.

"STAN’s mobile-first approach and focus on community engagement align perfectly with our vision to become a leading player in the global esports ecosystem. This acquisition allows us to expand our reach while empowering content creators and fostering a stronger gaming community," Nitish Mittersain, CEO of Nazara Tech, said.

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Stan offers a platform that allows creators to build and monetize communities, enabling users to engage with their favourite gaming creators or celebrities through digital collectables, chat or audio rooms, and exclusive celebrity communities. It also facilitates interaction among users.

Gamers can collect, play, and trade digital collectables, such as non-fungible tokens (NFTs) of their favourite esports players and content creators. These NFTs provide opportunities to win both physical and virtual experiences, including meetups or matches with their favourite players, boot camp tours with esports teams, signed merchandise, and social media interactions.

It's the company's second acquisition in a short span. Nazara Tech acquired 5,157 equity shares, representing 48.42 percent of Paper Boat Apps Private Limited, from its founders Anupam Dhanuka and Anshu Dhanuka. The deal is valued at Rs 300 crore, with Rs 225 crore paid as the first instalment. This acquisition makes Paper Boat a fully owned subsidiary of Nazara Tech, while Kiddopia Inc., a subsidiary of Paper Boat, continues to be a step-down subsidiary.

At about 9:20 am, shares of the company were trading at Rs 1,003, higher by 3.8 percent from the last close on the NSE. Nazara Tech shares have been on a decent run, rising 14 percent in three months.

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