Nazara Raises Rs 495 Cr from Investors, Triggers Open Offer

An online gaming firm Nazara Technologies stated Mithun Sacheti, a Caratlane founder and Arpit Khandelwal, a Plutus Wealth Management founder as well as its managing partner have invested Rs 495 crore by Axana Estates LLP. Collectively, this stake of the duo has caused a mandatory open offer.

According to a filing with the stock exchange on Monday, the investment will be allocated toward speeding up organic growth, strategic acquisitions, and entry into new markets.

Axana Estates would acquire 5.4 percent in the firm by allotment, priced at Rs 990 a share, through this preferential allotment, for which Nazara's board had earlier approved an investment. This has to go for shareholder and regulatory clearances as shares have been issued under the provision of Sebi Issue of Capital and Disclosure Requirements (ICDR) Regulations, 2018.

After the stake acquisition, Plutus Wealth Management LLP, Axana Estates LLP, and other persons acting in concert (PACs) will make a public open offer to buy an additional 26 percent stake in Nazara.

If the open offer is fully accepted, the total shareholding of the acquirers, PACs, and existing promoters Vikash and Nitish Mittersain along with the promoter group, is projected to increase to around 61.5 percent.

As of December, last year, Arpit Khandelwal already held an 8.06 percent stake in Nazara and an additional 11.82 percent through Plutus Wealth Management LLP. With the preferential allotment, his total stake rises to over 25 percent, prompting the requirement for a mandatory open offer. Although, the company will continue to operate independently, as stated in the exchange filing. As part of the agreement, it plans to allocate 50 lakh shares to Axana Estates.

“Nazara is set for global growth, and we are excited to partner with Arpit & Mithun, who share our vision. Their belief in our potential and expertise will help us scale new heights, positioning Nazara as a unique global gaming company from India,” said Nitish Mittersain, joint managing director and CEO of Nazara Technologies.

Along with the investment, Nazara is bolstering its presence in the global gaming market by acquiring intellectual property rights for two mobile games CATS: Crash Arena and King of Thieves from Barcelona’s ZeptoLab. The acquisition, valued at USD 7.7 million (around Rs 67 crore), will enable Nazara to publish the games under its "Nazara Publishing" brand. As of 03:07 PM, Nazara's shares are trading at Rs 1,054.