“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 Nitesh Mittersain continuing in his current role as CEO and joint managing director,” Nazara Tech said in a statement.
As per the March quarter, the promoter Mitter Infotech held 13.75% stake in the company.
It added that the promoters are confident that the company is strategically and financially well-positioned to capitalise on the opportunities ahead.
Plutus Wealth Managment has been investing in Nazara Tech since 2020. As per the March quarter data on BSE, Plutus Wealth Management held 6.63% stake in the company. “This transaction represents a resounding vote of confidence by Plutus in Nazara’s long-term growth prospects, its promoters and management,” said Vikash Mittersain, the promoter of Nazaara Tech.
Meanwhile, Arpit Khandelwal, the managing partner of Plutus Wealth Management, said with its expanded presence in various international markets and global partnerships, Nazara is a notable example of an Indian games company that has been successful in going global.
On another note, the company’s profit plummeted to ₹0.18 crore in the
March quarter from ₹9.4 crore in the same quarter last year. The dip was due to a nearly ₹17 crore loss from discontinued operations. The profit from continued operations was ₹17 crore versus ₹12 crore last year.
Revenue for fourth quarter was also down around 8% at ₹266 crore. For April-March 2023-24, the net profit from continued operations was around ₹90 crore, up 41% over last year, while revenue was up 4% at ₹1,138 crore.
The company currently has 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.
The earnings before interest, tax, depreciation, and amortisation (EBITDA) margin for the year was at around 10% for esports, 20% for the gaming business, and 8% for Adtech.
Revenue from the real-money gaming business, which was hit by the implementation of a 28% Goods and Services Tax (GST), declined to around ₹5 crore for the quarter, from ₹13 crore.
The GST regime became effective from October 1, 2023.
Nazara Tech shares were trading 0.7% higher at ₹618.65 apiece at 9.30 am on Monday, May 27.
Also Read: GMR Airports will triple its EBITDA in five years, says Jefferies; Sees ₹100 target
Read More: Nazara Tech promoters sell 6% equity to Plutus Wealth Management for liquidity