Nazara Technologies share rises 11% to hit 52-week high; here’s why

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.

Also read: IndiGo: This aviation stock surged nearly 80% in 8 months. Is it still a ‘buy’

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.

Also read: Adani Enterprises, HAL, ONGC and more: Jefferies initiates coverage on 13 Indian stocks; check full list

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.

 

You are on Mint! India’s #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.

More
Less

Published: 27 May 2024, 04:06 PM IST

Source link

indiansolution2019

Leave a Reply

Your email address will not be published. Required fields are marked *

Next Post

In final stretch of polls, markets raise a vote of confidence

Mon May 27 , 2024
One clear indicator of this is that the net value of the marketwide options’ open position plunged from ₹4.96 trillion on 7 May to ₹91,149 crore on 24 May, a day ahead of the sixth phase of the election. The last phase of voting will be held on 1 June, […]
In final stretch of polls, markets raise a vote of confidence

You May Like