Nazara aims to make strategic acquisitions and investment in other corporate bodies, grant loans, give guarantee, or provide security as part of its inorganic growth strategy
The gaming major is also seeking nod from its shareholders to acquire stake in Paper Boat Apps from the latter’s cofounders
Last week, Nazara said it would increase its stake in Paper Boat Apps, the developer and publisher of children’s digital gamified learning app ‘Kiddopia’, to 100%
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Listed gaming giant Nazara Technologies has sought approval from its shareholders for an increase in the limits to provide loans, guarantees, securities, or make investments.
The proposal includes granting loans on favourable terms and conditions to any person(s) or other corporate bodies. Additionally, it includes providing guarantees or securities in connection with loans taken by the company’s subsidiaries, associates, or other corporate bodies.
Furthermore, Nazara aims to acquire securities of various corporate bodies through subscription, purchase, or other means, in one or more tranches, up to an aggregate amount of INR 2,100 Cr.
Explaining the need for this, Nazara said it has been making investments in giving loans to its various subsidiaries, associates and other corporate bodies from time to time.
“The company has been constantly looking for opportunities in the market for acquisition/ investment in new businesses as part of its inorganic growth strategy. In order to make optimum use of funds available with the company and also to achieve long-term strategic and business objectives, the board of directors of the company proposes to make use of the same by making strategic acquisitions and investment in other bodies corporate or granting loans, giving guarantee or providing security to other body corporate as and when required,” it added.
Meanwhile, the gaming company has also sought approval from its shareholders for the acquisition of 2,614 fully paid-up equity shares, representing 24.54% of the paid-up share capital of Paper Boat Apps Private Limited, a subsidiary of the company. This acquisition will be from Anupam Dhanuka, considered a material related party transaction.
It has also sought approval for the acquisition of 2,543 fully paid-up equity shares, representing 23.88% of the paid-up share capital of its subsidiary Paper Boat Apps, from Anshu Dhanuka, classified as a material related party transaction.
It is pertinent to note that Anupam and Anshu are the cofounders and whole time directors of Paper Boat Apps.
Last week, Nazara announced that it would be acquiring an additional 48.42% stake in Paper Boat Apps. The transaction, valued at INR 300 Cr and to be paid in cash in tranches, will raise Nazara’s ownership in Paper Boat Apps to 100%.
Paper Boat Apps is the developer and publisher of children’s digital gamified learning app ‘Kiddopia’, a gaming app for kids in the US. Nazara will also consider merging Paper Boat Apps into the company at the appropriate time to bring home gamified learning IP ‘Kiddopia’.
Nazara first acquired a 50.91% stake in Paper Boat Apps in 2019.
For the last few months, Nazara has been increasing its stakes in companies in which it invested earlier. In May, it announced acquiring another 28.12% stake in Nextwave Multimedia Private Limited, the developer of the mobile cricket game franchise World Cricket Championship, for INR 21.6 Cr.
Nazara-backed NODWIN Gaming’s Singapore-based subsidiary, NODWIN Gaming International Pte. Ltd, also picked up an additional 43.49% stake in Freaks 4U Gaming GmbH for around €23.4 Mn (about INR 212.9 Cr).
Nazara’s consolidated net profit declined 98% year-on-year (YoY) to INR 18 Lakh in Q4 FY24. Its operating revenue also declined 8% YoY to INR 266.2 Cr in the quarter.
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