Shares of Nazara jumped as much as 9% to INR 887.05 during the intraday trading but shed some gains later
NODWIN Gaming said it was set to increase its existing 13.51% stake in Germany-based Freaks 4U Gaming GmbH to 100% through a share swap valued at INR 271 Cr
Shares of Nazara have witnessed a significant rally over the last one month and have jumped over 32% since May 25, the day the company published its FY24 earnings
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Shares of Nazara Technologies jumped as much as 9% to INR 887.05 during the intraday trading on the BSE on Friday (June 28) after the announcement that its esports subsidiary NODWIN Gaming will increase its stake to 100% in Freaks 4U Gaming GmbH.
Earlier in the day, the online gaming major said in an exchange filing that NODWIN Gaming International Pte. Ltd is set to increase its existing 13.51% stake in Germany-based Freaks 4U Gaming GmbH to 100% in tranches through a share swap valued at up to INR 271 Cr.
This acquisition is expected to enhance NODWIN’s capabilities, bringing in the expertise, experience and network of the Freaks 4U Gaming team, also contributing materially to its revenues going forward.
“This acquisition is a pivotal step in our global growth strategy. By integrating Freaks 4U Gaming’s expertise and resources, we are poised to deliver unparalleled services and expand our global footprint in the gaming and esports industries,” said NODWIN’s cofounder Akshat Rathee.
After jumping 9%, Nazara shares shed some gains and were trading 6.8% higher at INR 868.9 by 3.26 PM IST.
It is to be noted that NODWIN today owns an 80% share of the Indian esports market basis which it garnered INR 427 Cr in revenue in FY24. The company accounted for 38% of Nazara’s total revenue in FY24 which stood at INR 1,138.3 Cr.
Though NODWIN posted a loss of INR 20 Lakh in FY24 as against a profit of INR 7.1 Cr in FY23 on the back of the acquisition made during the year, Nazara CEO and joint MD Nitish Mittersain recently highlighted his confidence in the subsidiary given positive developments such as the success of the Playground IP, particularly with Season 3 performing exceptionally well and garnering international interest.
“Overall, we are optimistic that FY25 will be a much stronger year for esports, building on the groundwork laid in FY24,” he said.
Earlier this year, NODWIN also picked up a 100% stake in Comic Con India for INR 55 Cr ($6 Mn).
Shares of Nazara have witnessed a significant rally over the last one month and have jumped over 32% so far since May 25, the day the company published its FY24 earnings.
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