Acquisition of Nazara Technologies Limited by Axana Estates

Axana Estates LLP, along with Plutus Wealth Management LLP and Junomoneta Finsol Private Limited, has received approval from the Competition Commission of India (CCI) for the acquisition of a majority stake in Nazara Technologies Limited. This strategic move solidifies their influence in the gaming sector.

Overview of the Acquisition

Earlier this January, Axana Estates, Plutus Wealth Management, and Junomoneta Finsol initiated an open offer to acquire up to 26% of Nazara Technologies from existing shareholders. In the same month, Nazara Technologies successfully raised $60 million, primarily through Axana Estates, which resulted in a 5.4% stake acquisition in the company.

Key Players Involved in the Deal

Axana Estates LLP has designated Arpit Khandelwal and Mithun Sacheti as its partners. Khandelwal serves as the founder and managing partner of Plutus Wealth Management, while Sacheti is recognized as the founder of CaratLane, which is now part of Titan. Both Khandelwal and Plutus Investments are also stakeholders in Junomoneta.

Prior to this transaction, Plutus Wealth held a 13.3% stake in Nazara Technologies. With the latest developments, Axana Estates and Plutus Wealth are set to collectively hold 27.2% of the 26-year-old gaming company.

Stake Distribution

As it stands, by March 2025, Nazara founder Nitish Mittersain owns an 8.75% stake in the company, alongside Mitter Infotech. Additionally, Plutus Wealth Management and Arpit Khandelwal command 11.54% and 7.87% stakes respectively, while SBI Mutual Fund and Rekha Jhunjhunwala, on behalf of late Rakesh Jhunjhunwala, maintain shares of 8.52% and 7.06% in the company.

Financial Performance

In November of the previous year, Nazara Technologies raised $100 million via a preferential issue aimed at expanding in the gaming and sports media sectors. Since that time, Nazara and its subsidiaries have acquired majority stakes in several gaming companies, including Curve Games, TJRWrestling, ITRWrestling, King of Thieves and CATS, Trinity Gaming, and Funky Monkey.

While Nazara has yet to publish its Q4 FY25 results, its operating revenue in Q3 FY25 experienced a significant increase of 67%, rising to Rs 535 crore from Rs 320 crore in Q3 FY24. Nonetheless, the company’s profit saw a decline of 53.6% year-on-year during this period, amounting to Rs 13.7 crore.

Upcoming Developments

On Wednesday, Nitish Mittersain announced that Nazara will have approximately Rs 700 crore in cash available on its balance sheet. Additionally, the company has secured the rights to the popular show Bigg Boss in India and anticipates launching a related game in the forthcoming months.

As of 12:30 PM, the company’s share price stands at Rs 1,279, giving Nazara Technologies a total market capitalisation of Rs 11,229 crore, which is roughly $1.3 billion.