Nazara Tech To Use Rs 495 Crore From Axana Estates For Investments, Acquisitions: CEO
According to Nitish Mittersain, the company’s vision is to obtain multiple gaming companies with well-established gaming IPs.
The funds raised by Nazara Technologies (India) Ltd. through the preferential issue of shares to Axana Estates will be utilised towards making strategic investment and acquiring other gaming companies, according to Chief Executive Officer Nitish Mittersain.
"The primary use of these finds will be to execute this transaction," Mittersain told Profit.
According to Nitish Mittersain, the company's vision is to obtain multiple gaming companies with well-established gaming IPs. Nazara is in the process of acquiring two gaming PIs that are considered to be well established in the industry, he said.
"We plan to upgrade these games that may take few quarters to execute. In the coming years, we should still expect $6 to $8 million in revenue. But moving forward, once new versions of these games are launched, we (company) could do very well," Mittersain said.
On Monday, shares of Nazara Technologies rose over 5% after it announced to raise Rs 495 crore through preferential issue of shares. These equity shares will be given to Axana Estates LLP at an issue price of Rs 990 apiece.
The company will allocate 50 lakh shares to Axana Estates, while Mithun Sacheti, Siddhartha Sacheti, Yash Sacheti and Arpit Khandelwal are the partners of Axana Estates.
Following the issuance of shares, Axana Estates will hold a 5.4% stake in the gaming company.
Shares of Nazara Technologies closed 4.09% higher at Rs 1,064.25 apiece on the National Stock Exchange, compared to a 0.61% rise in the benchmark Nifty. The share price has risen 15.32% in the last 12 months.
Out of the 11 analysts tracking the company, six maintain a 'buy' rating on the stock, one recommends 'hold' and four suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential downside of 6.2%.
