Shares of Nazara Technologies Ltd. surged over 6% on Thursday after its subsidiary acquired a 100% stake in game marketing agency PublishMe for $2 million.
The strategic acquisition was done by the Singapore unit of Nodwin Gaming, which is a material subsidiary of the company. PublishMe has offices in Turkey and the UAE, according to an exchange filing on Wednesday.
The transaction will enable Nodwin to get a stronger foothold into the Middle East esports market, according to Nazara Chief Executive Officer Nitish Mittersain.
The inclusion of PublishMe stands as a "natural and integral progression to allow us to help publishers and brands understand and access this emerging market", Akshat Rathee, managing director of Nodwin Gaming, said.
Shares of Nazara rose as much as 6.75% to Rs 879 apiece, the highest since Sept. 22. The stock was trading at 5.65% higher at Rs 869.95 apiece compared to a 0.49% advance in the benchmark NSE Nifty 50 at 10.02 a.m.
It has risen 49.95% on a year-to-date basis. The total traded volume so far in the day stood at 2.3 times its 30-day average. The relative strength index was at 61.34 as of 9.59 a.m.
Eight out of the 12 analysts tracking Nazara maintain a 'buy' rating on the stock, three recommend a 'hold', and one suggests a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 9.7%.
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