Nazara Tech hits 52-week high after raising Rs 900 cr; to acquire 19% stake in Absolute Sports

Nazara Technologies announced that it has raised Rs 900 crore through preferential issue of equity share at Rs 954.27 per share.

The preferential equity issue amounting to Rs 900 crore will be placed with marquee investors such as SBI Mutual Fund, Junomoneta Finsol (an associate of Plutus Wealth), Think Investments, Discovery Investments, Mithun and Siddharth Sacheti, Cohesion Investments, Chartered Finance and Leasing, Ratnabali Investments and Aamara Capital, further strengthening Nazaras financial foundation for long-term expansion.

This capital infusion will fuel strategic acquisitions, fund business expansion, and enhance the companys ability to seize new growth opportunities.

In a parallel development, the company has entered into definitive agreement with Aboslute Sports to acquire addtional 19.35% stake or 41,173 equity shares for total consideration of Rs 145.47 crore, with 50% of the consideration paid in cash and the remaining amount in stock.

 

Sportskeeda, Absolute Sports flagship brand, reaches millions ofsports fans globally each month, with significant traction in India and the U.S, where it ranks among the top sports platforms. In addition, Absolute Sports has recently expanded by acquiring Pro Football Network (PFN), SoapCentral, and Deltias Gaming, further diversifying its sports and entertainment portfolio.

With this transaction, the company will hold a 91% ownership stake in Absolute Sports, reinforcing its leadership position in the sports media domain. The acquisition is expected to be completed within 60 days.

Nitish Mittersain, CEO & Jt MD of Nazara Technologies, said, "Nazara has demonstrated its ability to attract top-tier investors who believe in our long-term vision of establishing Indias first globally respected gaming powerhouse. This Rs 900 crore fundraise will be instrumental in accelerating our growth across key segments.

Additionally, increasing our stake to 91% in Absolute Sports (Sportskeeda) reinforces our leadership in the sports media landscape. The growth of Absolute Sports, from its early days as a startup to becoming a global media player, underscores our commitment to supporting innovative teams that consistently deliver transformational growth."

Nazara Technologies is a diversified gaming & sports media platform with presence in India and across emerging & developed global markets such as Africa and North America. It has offerings across the interactive gaming, eSports, ad-tech and gamified early learning ecosystems including World Cricket.

The gaming and sports media company's consolidated net profit (from continuing operations) increased 13.23% to Rs 23.62 crore in Q1 FY25 from Rs 20.86 crore reported in Q4 FY23. Revenue from operations stood at Rs 250.08 crore in Q1 FY25, down 1.71% from Rs 254.43 crore reported in the same period a year ago.

The scrip slipped 4.16% to Rs 1,014.40 on the BSE. It has also hit all-time high at Rs 1,124.15 in intraday today.

Powered by Capital Market - Live News