Nazara Technologies Shares Skyrocket 11% to Hit 52-Week High: Stake Sale Triggers Market Surge

Nazara Technologies’ share price surged over 11.50% on Monday, reaching ₹685 per share, a 52-week high. This spike happened after the company announced that its promoter, Mitter Infotech, sold a 6.38% stake to Plutus Wealth Management in a block deal on May 27. Plutus Wealth Management has been an investor in Nazara Technologies since before its IPO in 2020.

According to the company, the block trade gives liquidity to the promoters who have dedicated 25 years to the company’s growth. The promoters will retain control, with Nitish Mittersain continuing as CEO and Joint Managing Director. They are confident that the company is well-positioned for future opportunities.

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After the block deal, Mitter Infotech now holds over 10% of Nazara Technologies’ shares. The promoters do not plan to sell any more shares; the sale was to provide them with some liquidity.

“Plutus Wealth Management LLP has been a long-term investor in Nazara since before the IPO and has participated in subsequent fundraises,” said Vikash Mittersain, Promoter of Nazara Technologies. “This transaction shows Plutus’s strong confidence in Nazara’s long-term growth prospects and its management,” he added.

In an interview with CNBC-TV18, Nitish Mittersain, the founder of Nazara Tech, mentioned that the company’s real-money gaming segment could grow to make up 30% of its overall business in the next 2-3 years, if they find good opportunities for growth.

Last week, the gaming and sports media company reported a net profit of ₹18 lakh, significantly down from ₹9.4 crore in the same period last year. This drop in profitability was mainly due to a loss of ₹16.87 crore from discontinued operations during the quarter, resulting from write-offs in several of the company’s older businesses, including its real-money gaming venture, Halaplay.