Nazara Gets Shareholders Nod To Raise INR 495 Cr Via Preferential Issue

Nazara Technologies’ shareholders have approved issuing equity shares for cash on a preferential basis to raise INR 495 Cr from Axana Estates, which is backed by Plutus Wealth Management founder Arpit Khandelwal and CaratLane cofounder Mithun Sacheti. 

The proposal received 99.99% of the votes cast in favour.

With this, Axana Estates, previously a non-promoter, will become a promoter holding 5.4% of Nazara’s post-issue share capital.

Notably, Plutus Wealth Management, Axana Estates and Junomoneta Finsol are also acquiring an additional 26% stake in the company from its stakeholders. For which they have launched an open offer. 

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.

In a recent interview with Inc42, CEO and joint managing director Nitish Mittersain said that after the open offer, the promoter group holding will increase significantly, adding to the overall capability of the company. 

“If the whole open offer is subscribed, the promoter group holding will go to 61.5%,” said Mittersain.

It is pertinent to mention that Nazara has been on a fundraising and acquisition spree over the last year or so. Its major acquisitions include Fusebox Games, Pokerbaazi, Paperboat, STAN, Ninja Global FZCO, Freaks 4U, and Circle of Games. 

Earlier, Mittersain told Inc42 that the company will continue to look for inorganic acquisition opportunities for gaming studios and real-money gaming (RMG) platforms in India and abroad.

For the third quarter of the financial year 2024-25 (Q3 FY25) the company saw its consolidated net profit declining 53.5% to INR 13.7 Cr from INR 29.5 Cr in the year-ago quarter. While its operating revenue zoomed 66.8% to INR 534.7 Cr during the quarter under review from INR 320.4 Cr in Q3 FY24