Block Deal: Nazara Promoter Mitter Info Sells 6.38% Stake To Existing Backer Plutus Wealth

Gaming firm Nazara Technologies’ promoter Mitter Infotech on Monday sold 48.84 Lakh shares or 6.38% equity to Plutus Wealth Management in an on-market block deal.

The block trade will provide liquidity for the promoters while allowing them to retain control of the company, with Nitish Mittersain continuing as chief executive officer and joint managing director.

The promoters remain confident that the company is strategically and financially well positioned to capitalise on the numerous opportunities ahead, Nazara said in a regulatory filing.

Plutus Wealth Management LLP, an investor in Nazara since 2020 (pre-IPO), has demonstrated strong confidence in the company’s prospects by increasing its shareholding via this Block Trade, it added.

“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. With its expanded presence in various international markets and global partnerships, Nazara is a notable example of an Indian games company that has been successful in going global,” said Arpit Khandelwal, managing partner of Plutus Wealth Management LLP.

“In continuation to our philosophy, we look forward to actively supporting the management team as they execute on their growth strategy and aggressively accelerate progress towards achieving their long-term objectives,” he added.

Nazara Technologies’ consolidated net profit declined 98% to INR 18 Lakh in the fourth quarter of the financial year 2023-24 (FY24) from INR 9.4 Cr in the year-ago quarter.

Nazara said it incurred INR 11.37 Cr charges due to goodwill impairments, and INR 10.56 Cr for intangible assets related to gaming segment during Q4.

The company’s profit from continued operations was at INR 17.1 Cr for the quarter, as compared to INR 11.9 Cr in Q4FY23.

Furthermore, operating revenue declined 8% year-on-year (YoY) to INR 266.2 Cr in Q4 FY24 from INR 289.3 Cr in the same quarter a year ago.

Last year, Nazara got a major fund infusion from Zerodha founders Nikhil Kamath and Nithin Kamath, and others. Nazara CEO and joint MD Nitish Mittersain told Inc42 soon after that the company plans to use these funds for new investments and acquisitions of gaming studios.

Recently, it has acquired another 28.12% stake in Nextwave Multimedia Private Limited, the developers of the mobile cricket game franchise World Cricket Championship, for INR 21.6 Cr.

The fresh acquisition of a 100% stake in Nextwave will help Nazara in strengthening its portfolio of offerings in the virtual interactive sports genre in India and other emerging markets, the company added.