Nazara Tech promoter offloads 6% stake to address liquidy needs
Nazara Tech, on Monday, announced that its promoter Mitter Infotech LLP has divested a significant portion of its holdings. The promoter sold 48.84 lakh equity shares, equivalent to a 6.36% stake in the company, to Plutus Wealth Management. This transaction was carried out through a block deal window and is aimed at providing liquidity for the promoters who have dedicated over two decades toward the growth of the company.
Promoters retain control despite stake sale
Despite the sale, Nazara Tech confirmed that the promoters will maintain control of the company. Nitesh Mittersain will continue in his current role as CEO and joint managing director. Prior to this transaction, Mitter Infotech held a 13.75% stake in Nazara Tech as of the March quarter. The promoters expressed confidence in Nazara's strategic and financial positioning to capitalize on future opportunities.
Plutus Wealth Management increases stake in Nazara Tech
Plutus Wealth Management, an investor in Nazara Tech since 2020, has increased its stake in the company through this transaction. As of March quarter data on BSE, Plutus held a 6.63% stake in the company. Vikash Mittersain, another promoter of Nazara Tech, stated that "This transaction represents a resounding vote of confidence by Plutus in Nazara's long-term growth prospects, its promoters and management." Arpit Khandelwal, managing partner of Plutus Wealth Management, praised Nazara for its successful global expansion and partnerships.
Nazara Tech reports profit drop in March quarter
Nazara Tech reported a significant drop in profit for the March quarter, with earnings falling to ₹0.18 crore from ₹9.4 crore in the same quarter last year. This decrease was due to a nearly ₹17 crore loss from discontinued operations. However, the profit from continued operations was ₹17 crore versus ₹12 crore last year. The company's revenue for the fourth quarter also declined by approximately 8% at ₹266 crore.
Nazara Tech's annual performance and revenue breakdown
For the financial year 2023-24, Nazara Tech reported a net profit of around ₹90 crore, marking a 41% increase over the previous year. The company's revenue also saw an uptick, increasing by 4% to ₹1,138 crore. The firm operates three key segments - esports (Nodwin Gaming, Sportskeeda), gaming (World Cricket Championship, Kiddopia, Animal Jam, Classic Rummy etc), and advertising technology (Datawrkz). Esports is currently the biggest contributor at 55% of revenue while gaming and Adtech contribute 36% and 9%, respectively.
