Nazara Technologies share rises 11% to hit 52-week high; what’s behind the rally?

Nazara Technologies share rises 11% to hit 52-week high; what's behind the rally?

Dil Bar Irshad | May 27, 2024 | 04:16 PM IST | Breaking News | Follow on Google News

Nazara Technologies share rises 11% to hit 52-week high; what’s behind the rally?

Nazara Technologies share rises 11% to hit 52-week high; what’s behind the rally?

Mint

Nazara Technologies share price rallied over 11.50 per cent on Monday to ₹685 per share, hitting 52-week high after the company said that the promoter Mitter Infotech sold 6.38 percent stake to Plutus Wealth Management through a block deal, on May 27. Plutus Wealth Management has been a pre-IPO investor in Nazara Technologies since 2020.

“The Block Trade will provide liquidity for the promoters who have dedicated 25 years to the Company’s growth. The promoters will retain control of the Company, with Nitish Mittersain continuing in his current role as CEO & Jt. Managing Director. The promoters remain confident that the Company is strategically and financially well positioned to capitalize on the numerous opportunities ahead,” the company said in an official release.

Following the block deal, Mitter Infotech now holds over 10 percent of the gaming company’s shares. The promoters do not intend to sell any more shares, and the sale was conducted to provide them with some liquidity.

“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.

In an interview with CNBC-TV18, Nitish Mittersain, the founder of Nazara Tech, said that the company’s real money gaming segment could expand to comprise up to 30 percent of its overall business within the next 2-3 years, provided they identify suitable opportunities for inorganic growth.

The gaming and sports media company announced a net profit of ₹18 lakh last week, marking a substantial decrease from ₹9.4 crore in the same period last year. This sharp decline in profitability was primarily due to a loss of ₹16.87 crore from discontinued operations during the quarter, resulting from write-offs in several of the company’s legacy businesses, including its real-money gaming venture, Halaplay.

Dil Bar Irshad

Dil Bar Irshad is a seasoned journalist, hails from Jammu Kashmir's Doda, covers political, social, business stories, index stories.