Nazara Technologies, an online gaming company, said that Mithun Sacheti, founder of Caratlane, and Arpit Khandelwal, founder and managing partner of Plutus Wealth Management, have invested Rs 495 crore through Axana Estates LLP, triggering a necessary open offer.
According to a stock exchange filing on Monday, the investment would be used to expand into new markets, make smart acquisitions, and speed up organic growth.
With the Rs 990 per share preferred allocation, Axana Estates will own 5.4% of the business. Nazara's board has accepted the investment, but it still needs shareholder and regulatory clearance. Shares will be issued in line with the 2018 Sebi Issue of Capital and Disclosure Requirements (ICDR) Regulations.
Plutus Wealth Management LLP, Axana Estates LLP, and other persons acting in concert (PACs) will purchase a further 26% of Nazara through a public offering after the share acquisition.
If the open offer is completely accepted, the combined shareholding of the acquirers, PACs, and existing promoters—Vikash and Nitish Mittersain—along with the promoter group is estimated to be around 61.5%.
As of December last year, Arpit Khandelwal owned an 8.06% investment in Nazara, with an additional 11.82% held through Plutus Wealth Management LLP. The preferential distribution increases Khandelwal's total shareholding to more than 25%, triggering the necessary open offer.
However, the company will continue to function autonomously, according to the exchange filing. Axana Estates would receive 50 lakh shares as part of the transaction.
"Nazara is poised for worldwide expansion, and we are thrilled to join with Arpit and Mithun, who share our goal. Their conviction in our potential and skills will propel us to new heights, establishing Nazara as a one-of-a-kind global gaming company based in India," stated Nitish Mittersain, Nazara Technologies' joint managing director and CEO.
In addition to the investment, Nazara is increasing its position in the worldwide gaming market by acquiring intellectual property rights for two mobile gaming titles, CATS: Crash Arena and King of Thieves, from Barcelona-based ZeptoLab. The deal, worth $7.7 million (about Rs 67 crore), will allow Nazara to publish the games under its "Nazara Publishing" label.
