Nazara allots 6.48 lakh equity shares to Unnati Management, completes OpenPlay acquisition

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Gaming and sports company Nazara Technologies has completed the acquisition of OpenPlay Technologies, a Hyderabad based entity that operates ClassicRummy and KhelYaar. Started by Nitish Mittersain in 2000, Nazara became the first Indian gaming company to be listed. The company listed in March this year at a premium of 80% over the issue price.

In a regulatory filing dated November 25, the Rakesh Jhunjhunwala-backed company informed that it has allotted 6.48 Lakh shares to Unnati Management, in lieu of the remaining 76.7% stake in Hyderabad’s OpenPlay. With this, the listed gaming major now holds 100% of the issued and paid up share capital of OpenPlay and has completed the acquisition. The Acquisition Agreement was executed on August 27, 2021 with Unnati Management Consultants LLP and Sreeram Reddy Vanga as the Sellers.

We hereby inform you that the Board of Directors of Nazara Technologies Limited (the “Company”) by way of circular resolution passed on November 24, 2021, approved the allotment of 6,48,125 fully paid up equity shares of Rs. 4/- (Rupees Four only) each at a price of Rs. 2,206/- (including a premium of Rs. 2,202/-) per equity share to Unnati Management Consultants LLP, for consideration other than cash (i.e.being consideration for acquisition of 7670 equity shares of Rs 10/- each of OpenPlay Technologies Private Limited), on preferential basis by way of private placement,” read the disclosure issued under the SEBI Regulations.

Founded by Sreeram Reddy Vanga, OpenPlay operates a platform offering multiple games to gamers and influencers, enabling the latter to host game tournaments. “The total consideration of INR 186.41 Cr will be payable partly in the form of cash and partly by way of swap of shares (i.e. issuance of equity shares against acquisition of equity shares of OpenPlay). The nature of consideration (i.e cash or swap of shares) for the 2nd tranche will be determined by the company at its sole discretion at the time of closing,” the company said in a regulatory filing on August 27.

In the first tranche, the company acquired 23.30% stake of OpenPlay for a consideration of INR 43.43 crores. Nazara holds majority stakes in companies Nodwin Gaming, sports news portal Sportskeeda, Esports company Next Wave Multimedia, developer of World Cricket Championship (WCC), the largest mobile-based cricket simulation game and Paper Boat Apps, developers of popular gamified early learning app Kiddopia.

In October, Nazara raised INR 315 Cr through preferential allotment of fresh equity to existing institutional investors Gamnat Pte Ltd and Plutus Wealth Management, with an aim to invest in growth initiatives and pursue strategic acquisitions. Nazara posted a consolidated net profit for the July-September quarter increased 9.8% to INR 14.5 Cr.

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