Nazara raises Rs 495 crore, launches open offer to strengthen global gaming position

Axana Estates LLP, backed by Khandelwal and Sacheti, will invest Rs 495 crore to acquire a 5.40% stake in Nazara through a preferential issue of equity shares priced at Rs 990 per share.

Written by BrandWagon Online

January 20, 2025 15:10 IST

Nazara’s latest investment aligns with its broader strategy of blending gaming and interactive entertainment.

Rekha Jhunjhunwala, wife and executor of the Estate of Late Rakesh Jhunjhunwala, has divested almost half of the Estate's shareholding in Nazara Technologies to 3.6 per cent through open market sales.

Nazara Technologies Limited has raised Rs 495 crore from existing investors Arpit Khandelwal and Mithun Sacheti through Axana Estates LLP. From what is understood, the investment involves the acquisition of a 5.40% stake in the company, which will trigger a mandatory open offer to increase the stake further. The strategic partnership aims to propel Nazara’s position in the global gaming and digital entertainment industry.

Key transaction details

Axana Estates LLP, backed by Khandelwal and Sacheti, will invest Rs 495 crore to acquire a 5.40% stake in Nazara through a preferential issue of equity shares priced at Rs 990 per share. This transaction has received approval from the company’s board, pending shareholder and regulatory clearances. The issued shares will adhere to SEBI (ICDR) Regulations, 2018, including applicable lock-in periods. Following this, Plutus Wealth Management LLP and Axana Estates LLP will launch an open offer to acquire an additional 26% stake in Nazara, as per SEBI’s Takeover Regulations. Should the open offer be fully accepted, the combined shareholding of the acquirers, the promoters, and the promoter group would be approximately 61.5% of the company.

What are the strategic implications for Nazara Technologies?

The investment and partnership bring significant resources and expertise to Nazara, supporting its growth ambitions and global expansion plans. Nazara’s leadership will remain intact, with Vikash Mittersain serving as Chairman & Managing Director and Nitish Mittersain as Jt. Managing Director & CEO. “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,” Nitish Mittersain, Jt. managing director and CEO, Nazara Technologies, said. Reportedly, the funds raised will be directed toward Nazara’s organic growth initiatives, strategic acquisitions, and exploring new market opportunities. As part of its expansion, Nazara has also acquired two popular mobile gaming intellectual properties from ZeptoLab. The IPs, ‘CATS: Crash Arena’ and ‘King of Thieves,’ will be added to the Nazara Publishing portfolio, further strengthening the company’s position in the global mobile gaming market.

“We are excited to deepen our investment in Nazara, a company with a proven track record of capitalising on global gaming trends. This consolidation of ownership will provide growth capital and bring strategic expertise to support Nazara, its promoters & team in the journey of becoming a world-leading gaming and entertainment brand.” Arpit Khandelwal, founder and managing partner, Plutus Wealth Management LLP, added.

This article was first uploaded on January twenty, twenty twenty-five, at ten minutes past three in the afternoon.