Nazara Technologies to Acquire 47.7% Stake in PokerBaazi Parent for ₹982 Crore

Nazara Technologies Ltd., a prominent player in India's gaming industry, has announced its decision to acquire a 47.7% stake in Moonshine Technology, the parent company of the popular online poker platform PokerBaazi. The acquisition, valued at ₹982 crore, is expected to bolster Nazara's status as a leading diversified gaming platform in the country.

Details of the Acquisition

The deal involves a combination of secondary transactions and primary capital injections. Nazara will acquire the 47.7% stake in Moonshine Technology for ₹832 crore through a secondary transaction. This includes buying shares from existing stakeholders, including the founders and other investors. Additionally, Nazara plans to inject ₹150 crore in primary capital into Moonshine Technology via compulsory convertible preference shares, aiming to support the company’s growth and expansion plans.

The acquisition process is expected to be completed within the next 60 days, according to a filing by Nazara Technologies. The company will pay ₹592.26 crore in cash and the remaining ₹239.25 crore through a share swap.

Strengthening Dominance in the Gaming Sector

Nazara's CEO, Nitish Mittersain, expressed enthusiasm about the acquisition, stating, "PokerBaazi has not only emerged as the undisputed leader in online poker gaming in India but has also set new standards in user engagement, innovation, and overall experience." The acquisition is seen as a strategic move to enhance Nazara's diversified gaming portfolio and strengthen its position in the competitive Indian gaming market.

PokerBaazi, the largest online poker platform in India, contributes significantly to Moonshine Technology's revenue, accounting for over 85% of its net revenue. In addition to PokerBaazi, Moonshine also operates SportsBaazi, a fantasy sports platform that contributes 12% of the company's revenue. As of May 2024, PokerBaazi boasted 340,000 monthly active users, underscoring its leading position in the Indian online poker market.

Growth and Future Prospects

Navkiran Singh, CEO and Founder of Baazi Games (MTPL), highlighted the potential benefits of the partnership, stating, "As the Indian gaming sector continues to grow, we firmly believe that partnering with Nazara Technologies is the right step toward advancing the nation's gaming ecosystem. This partnership will also contribute to our aim for global expansion in the gaming space."

The deal is expected to foster innovation within the gaming sector and create new job opportunities. Moreover, it aligns with Nazara's strategic vision of expanding its footprint in the Indian gaming market and exploring international growth opportunities.

Stock Market Impact

Following the announcement, shares of Nazara Technologies Ltd. settled at ₹1,014 apiece on the NSE, marking a 5.07% increase. The stock has risen by 18% so far in 2024, reflecting positive investor sentiment and confidence in the company's growth strategy.

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Nazara Technologies' acquisition of a significant stake in Moonshine Technology, the parent of PokerBaazi, marks a crucial step in strengthening its position as a dominant diversified gaming platform in India. The strategic move not only expands Nazara's portfolio but also opens up new avenues for growth and innovation in the ever-evolving gaming landscape.

Source: CNBC-TV18