Active Stocks
Fri Jun 21 2024 15:59:28
  1. Tata Steel share price
  2. 179.85 -1.37%
  1. ITC share price
  2. 419.60 -0.89%
  1. State Bank Of India share price
  2. 836.40 -0.88%
  1. Wipro share price
  2. 490.55 0.01%
  1. ICICI Bank share price
  2. 1,156.85 0.00%
Business News/ Markets / Stock Markets/  Nazara Technologies share rises 11% to hit 52-week high; what's behind the rally?
BackBack

Nazara Technologies share rises 11% to hit 52-week high; what's behind the rally?

Nazara Technologies 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.

Nazara Technologies share price rallied over 11.50% on MondayPremium
Nazara Technologies share price rallied over 11.50% on Monday

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.

 

3.6 Crore Indians visited in a single day choosing us as India's undisputed platform for General Election Results. Explore the latest updates 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
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started