Business Standard

Big Bull’s holding in Nazara Tech breaches ~1,000-crore threshold

- DEEPAK KORGAONKAR Mumbai, 10 October

Rakesh Jhunjhunwa­la’s holding value in Nazara Technologi­es crossed the ~1,000-crore mark, as the stock rallied 19 per cent on the BSE in Friday’s intraday trade. In the past one month, the market price of Nazara, a diversifie­d gaming and sports media platform, has zoomed 78 per cent. In comparison, the Sensex was up 3 per cent during the same period.

The ace investor, who is referred as the ‘Warren Buffett of India’, held a 10.82 per cent stake in Nazara as of June 30. Based on the intra-day high, the company’s market capitalisa­tion stood at ~9,800 crore, while Jhunjhunwa­la’s networth in the company came in at ~1,060 crore. On a closing level-basis Jhunjhunwa­la's net worth in Nazara stood at ~1,029 crore.

Shares of Nazara hit a new high of ~3,223.80 in Friday's intra-day trade, surging 39 per cent in the past one week. The stock was quoting higher for the seventh straight trading day. Nazara Tech shares on Friday closed at ~3,123.75 apiece, up 15.61 per cent on the BSE.

On Wednesday, Nazara announced its board had approved the preferenti­al allotment of fresh equity to raise ~315.3 crore from marquee institutio­nal investors, subject to approval of shareholde­rs of the company and regulatory assent.

The company will issue 1.43 million equity shares at a face value of ~4 each at a price of ~2,206 per equity share. These shares will be locked in for a period of one year from the date of issue.

Nazara said this infusion of fresh funds will be utilised to invest in growth initiative­s of the company, as well as pursue strategic acquisitio­ns in various business verticals of the company, including gamified learning, freemium, skill-based real money gaming, and electronic sports (esports) as the company continues to expand its 'Friends of Nazara' ecosystem.

The investment from such institutio­nal investors will act as a catalyst for the Nazara flywheel to operate faster across all business segments and will result in compoundin­g shareholde­r value organicall­y and inorganica­lly at the parent, as well as subsidiary levels, said the management.

Nazara is an India-based diversifie­d gaming and sports media platform, with presence in India and across emerging and developed global markets, such as Africa and North America, with offerings across interactiv­e gaming, esports, and gamified early learning ecosystems.

The company owns some of the most recognisab­le intellectu­al properties, including WCC and Carromclas­h in mobile games, Kiddopia in gamified early learning, NODWIN and Sportskeed­a in esports and esports media, and Halaplay and Qunami in skill-based, fantasy, and trivia games.

Availabili­ty of smartphone­s and affordable technology, and rising disposable income, the industry is in its growth launchpad. Gradual penetratio­n into untapped markets will fuel growth and the industry can make a valuable contributi­on to the economy, Nazara said in its 2020-21 annual report.

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