In a game-changing move, Nazara Technologies has acquired a 47.7% stake in PokerBaazi’s parent company, Moonshine Technology (MTPL) for INR 831.5 Crores.
According to Nazara, its board approved the strategic investment through secondary acquisition of 18.96 Lakh equity shares at a face value of INR 10 each of Moonshine Technology from its existing shareholders who include PokerBaazi founder Navkiran Singh, co-founders Puneet Singh, Avneet Rana, Varun Ganjoo, Anirudh Chaudhry, Gurjeet Kaur, Bellerive Capital, and gaming company Influencers Interactive.
Of the INR 831.5 Cr, Nazara Technologies will pay INR 592.26 Cr in cash, while the remaining amount worth INR 239.25 Cr will be paid through a share swap through issuance of fully paid-up equity shares of the company.
Besides the 831.5 Cr, Nazara Technologies’s board also approved an additional equity infusion of up to INR 150 Cr into MTPL, which will be done through issuance of compulsorily convertible preference shares (CCPS). In the end, the total investment will nearly touch a thousand crores with a whopping INR 982 crore investment, the largest ever bet made by Nazara on any company till date.
However, the transaction needs approval from Nazara Technologies shareholders and other regulatory approvals, if needed. This landmark acquisition is set to solidify Nazara’s presence in the online gaming sector and bring Moonshine under its fold as an associate company.
PokerBaazi is one of the leading online poker platforms in India, with over 340,000 monthly users. Despite the new 28% GST regime, the platform is thriving with major accomplishments in the game. Notably, there won’t be any significant change in PokerBaazi’s leadership, but Nazara Technologies will hold a seat on the company’s board of directors and will play a pivotal role in PokerBaazi’s future decisions. The acquisition will be finalized in the next 60 days.
Further, Nazara Technologies has also acquired a 15.86% stake in the esports community platform ‘STAN’ for a whopping INR 18.4cr (2.2 million). STAN is a block-chain based Esport Community startup, which works as a bridge between Indian gaming creators and fans.
This acquisition came after seeing the skill-based game boom in India. Nitish Mittersain, Joint MD & CEO of Nazara Technologies, said, “I think the skill-based online gaming market in India has been growing very fast.”
He highlighted the GST council meeting’s outcome, in which the online gaming industry saw a 412 percent jump in revenue reaching INR 6,909 in the last six months. He further added that the company will not divert from its core business, which is developing games and esports.
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