Nazara Technologies gains over 4.5% after promoter offloads 300 cr worth stake via block deal

Shares of gaming company Nazara Technologies Ltd rallied more than 4.5% on Monday, May 27, after its promoter entity Mitter Infotech LLP sold 6.38% of equity, or 48.84 lakh shares, worth around ₹300 crore in a block deal.

Nazara Technologies informed the stock exchanges on Monday that Mitter Infotech LLP sold 48,84,000 equity shares, representing 6.38% of the issued share capital, to Plutus Wealth Management LLP through an on-market transaction on May 27.

The company said that the block deal will provide liquidity for the promoters. Promoters and promoter group entities held 16.43% stake in the company as of March 31, 2024. Mitter Infotech LLP had a 13.75% stake in the company.

“The promoters will retain control of the company, with Nitish Mittersain continuing in his current role as CEO & Jt. Managing Director,” Nazara Technologies said in an exchange filing.

The promoters remain confident that the company is strategically and financially well positioned to capitalize on the numerous opportunities ahead, it added.

Plutus Wealth Management LLP has been an investor in Nazara since 2020 (pre-IPO). Plutus Wealth Management held a 6.63% stake or 50,76,467 equity shares as of March 31, 2024.

“Plutus Wealth Management LLP has been a long term investor in Nazara since the pre-IPO days and has actively participated in subsequent fund raises as well”, said Vikash Mittersain, Promoter, Nazara Technologies Limited.

“This transaction represents a resounding vote of confidence by Plutus in Nazara’s long-term growth prospects, its promoters and management”, he added.

Nazara Tech shares surged as much as 4.7% to hit an intraday high of ₹647 per share on the NSE. More than 13.47 lakh shares of the company changed hands on the bourse.

Nazara is India's only listed gaming and e-sports company with majority ownership of several leading gaming brands with presence in India, the United States and other global markets.