Nazara Raises Rs 495 Cr, Triggers Open Offer

New Delhi, Jan 20 (PTI) Gaming and Esports company Nazara Technologies has raised Rs 495 crore from existing investors Arpit Khandelwal and Mithun Sacheti-led entity -- a move that would trigger an open offer of 26 per cent, the company said on Monday.

The acquisition of 5.4 per cent stake by Axana Estates, whose designated partners include Arpit Khandelwal and Mithun Sacheti, will be through a preferential issue of equity shares at a price of Rs 990 per share.

"Axana Estates LLP, whose designated partners include Arpit Khandelwal and Mithun Sacheti, will infuse Rs 495 crore into the company to acquire about 5.40 per cent stake through a preferential issue of equity shares at a price of Rs 990 per share," according to a release.

The transaction has been approved by the company's board and is subject to shareholder and regulatory nod.

"Arpit Khandelwal, Founder and Managing Partner of Plutus Wealth Management, and Mithun Sacheti, tech entrepreneur and Founder of Caratlane, have announced a strategic partnership with Nazara Technologies and its promoters, Vikash and Nitish Mittersain," it said, adding that the transaction involves a Rs 495-crore investment by Axana Estates LLP, with the stake increase triggering a mandatory open offer and reinforcing the collective vision of accelerating Nazara in its path to becoming a global leader in gaming and digital entertainment.

Plutus Wealth Management and Axana Estates LLP, along with PACs (Persons Acting in Concert) will launch a public open offer to acquire an additional 26 per cent stake in Nazara. This is subject to regulatory approvals and completion of the open offer process.

Assuming full acceptance of the open offer, the total shareholding of acquirers and PACs, along with the existing promoters (Vikash & Nitish Mittersain) and promoter group, is expected to be about 61.5 per cent of the company.

Prior to the 5.4 per cent acquisition, Arpit Khandelwal and Mithun Sacheti's holdings cumulatively stood about 22 per cent. The additional chunk of 5.4 per cent stake as well as the open offer, if fully subscribed, would raise the holding to about 51-52 per cent, a senior official of Nazara said.

Meanwhile, the release said the partnership brings together complementary expertise and resources, creating a powerful alliance enabling Nazara to access new markets, leverage cutting-edge technologies, and enhance operational efficiencies.

Nazara will continue to operate independently under the leadership of its Chairman and Managing Director Vikash Mittersain, along with joint Managing Director and CEO Nitish Mittersain.

The investment will be directed toward accelerating organic growth, strategic acquisitions, and expansion into new markets.

In addition to this strategic partnership, Nazara is bolstering its mobile gaming portfolio with the acquisition of two popular game IPs from ZeptoLab.

The Nazara board on Monday approved the acquisition of the intellectual property rights of two popular mobile gaming titles, 'CATS: Crash Arena' and 'King of Thieves' from Barcelona-based game developer and publisher ZeptoLab for a total consideration of USD 7.7 million (about Rs 67 crore).

Through this acquisition, Nazara will own the game IPs and will also publish the games under the 'Nazara Publishing' banner strengthening its position in the global mobile gaming market.