Nazara to raise Rs 495 crore through 5.4% stake sale to Axana Estates

Nazara Technologies announced on Monday its plans to secure Rs 495 crore through a 5.4% stake sale to Axana Estates, an entity established by the company’s current investors. The entity was formed by Arpit Khandelwal, who founded Plutus Wealth Management, and Mithun Sacheti, the co-founder of CaratLane.
The funding, aimed to support Nazara’s strategic acquisitions and international growth plans, will likely grant promoter designation to Khandelwal and Sacheti, placing them alongside the company’s founder Nitish Mittersain and his family members.”This consolidation of ownership will provide growth capital and bring strategic expertise to support Nazara, its promoters and team in the journey of becoming a world-leading gaming and entertainment brand,” Khandelwal said in a statement.
The transaction, which is priced at Rs 990 per share, has triggered an open offer wherein Plutus Wealth Management and Axana Estates, along with persons acting in concert (PAC), will launch a public open offer to acquire an additional 26% stake in Nazara. The move is to comply with Sebi regulations that monitor 25% or above shareholding in a company. The exercise is expected to bring the total shareholding of the acquirers and PACs, along with the existing promoters – Vikash Mittersain, Nitish Mittersain, and the promoter group, to 61.5% of the company. This is contingent upon the open offer of 26% being fully subscribed. The current holding of the promoters in the company is 9%.
“Existing promoters, which are me and my family, will continue to run the business and continue to be in control of the company. I continue as CEO of the business. Nothing changes in the way the business is operating today,” Nitish Mittersain told TOI.
The open offer is sized at about 2.4 crore equity shares of face value of Rs 4 per share, making up to 26% of the target company, aggregating to a value of about Rs 2,382 crore.
The NSE- and BSE-listed gaming and media firm in September also issued shares to raise Rs 900 crore from a consortium of investors comprising SBI Mutual Fund. It also announced the acquisition of two game rights from ZeptoLab for Rs 67 crore.