Nazara Technologies Shares Fall After Rs 982-Crore PokerBaazi Investment

Shares of Nazara Technologies Ltd. fell after surging to an all time high on Friday, after the company announced an investment in Moonshine Technology Pvt., the parent company of PokerBaazi. The deal, valued at Rs 982 crore, comprises two key components—Rs 832 crore for a 47.7% stake in Moonshine through a secondary transaction and an additional Rs 150 crore in primary capital, injected via compulsory convertible preference shares.

PokerBaazi, which drives over 85% of Moonshine’s net revenue, boasts approximately 3,40,000 monthly active users as of May 2024.

"This investment in Moonshine Technology represents a significant step in our journey to strengthen Nazara’s position as India’s dominant diversified gaming platform," said Nitish Mittersain, chief executive officer of Nazara Technologies.

Partnering with Nazara Technologies aligns perfectly with the company's vision for the future of India’s gaming sector, said Navkiran Singh, chief executive officer and founder of Baazi Games.

"We are confident that our combined efforts will foster innovation, create new jobs, and further India’s place in the global digital economy."

In addition to this significant acquisition, Nazara Technologies is actively pursuing new mergers and acquisitions this fiscal, to bolster its performance, Mittersain said.

"We have built a very strong deal pipeline and will continue to invest very actively in the coming months. So, we remain very positive about fiscal 2025 and even more positive in fiscal 2026," he stated.

Separately, Nazara Technologies recently announced a pact with the Telangana government to establish an AI Centre of Excellence focused on gaming and digital entertainment. "In the next three to five years, we are going to see significant disruptions, both on the positive and the negative side," he said. "We, as a company, want to make sure that we are paying a lot of attention and doing active work here so we can leverage and benefit from AI."

Shares of Nazara Technologies Ltd. rose as much as 4.03%, to hit its highest ever level, before erasing gains to trade 0.91% lower at Rs 999.90 apiece, as of 09:31a.m. This compares to a 0.26 decline in the NSE Nifty 50.

The stock has risen 15.79% year-to-date. Total traded volume so far in the day stood at 1.45 times its 30-day average. The relative strength index was at 61.92.

Out of 11 analysts tracking the company, four maintain a 'buy' rating, three recommend a 'hold' and four suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies a downside of 15.2%.