Mithun Sacheti’s Axana Estates, Plutus To Launch Open Offer For Nazara

SUMMARY

As per the open offer, the three existing backers will acquire up to 2.4 Cr (2,40,64,121) equity shares at an offer price of INR 990 for a total consideration worth INR 2,382.34 Cr

This offer price is a 7.19% discount from Nazara’s closing price at INR 1,066.80 apiece on the BSE today

Post the open offer, the combined shareholding of Axana Estates, Plutus Wealth Management LLP, Junomoneta Finsol Private Limited (PAC), existing promoters (Vikash Mittersain and Nitish Mittersain) and promoter group will together hold around 61.5% stake in Nazara Technologies

The approval by the board of gaming major Nazara Technologies

to raise INR 495 Cr has triggered an open offer from its existing investors Plutus Wealth Management LLP, Axana Estates LLP and Junomoneta Finsol Private Limited (PAC) to acquire an additional 26% stake in the company from its stakeholders.

As per the open offer, the three existing backers will acquire up to 2.4 Cr (2,40,64,121) equity shares at an offer price of INR 990 for a total consideration worth INR 2,382.34 Cr. This offer price is a 7.19% discount from Nazara’s closing price at INR 1,066.80 apiece on the BSE today (January 20).

“Assuming full acceptance of the open offer, the total consideration payable by the acquirers and PAC under the open offer at the offer price will be INR 23,82,34,79,790.00 payable in cash (“offer consideration”),” the notice for the open offer read.

As per the preferential issue announced by Nazara today, Axana Estates LLP, whose designated partners include Arpit Khandelwal and Mithun Sacheti, will infuse INR 495 Cr into the company to acquire about 5.40% stake at a price of INR 990 per share.

Khandelwal is the founder and managing partner of Plutus Wealth Management LLP and Sacheti is the founder of CaratLane, now completely owned by Titan. Khandelwal and Plutus Investments hold stakes in Junomoneta.

Meanwhile, Nazara’s board today also approved increasing the limits to provide loans, give guarantees or provide security to INR 3,500 Cr from INR 2,931.51 Cr earlier.

Meanwhile, the company’s board has also approved acquisition of two popular game IPs from ZeptoLab for a total consideration of $7.7 Mn (about INR 67 Cr).