Bengaluru-based discount brokerage Zerodha acquired shares worth ₹93 Cr of Mumbai-listed gaming and esports company Nazara Technologies in a bulk deal on May 7. The transaction involved promoter entity Mitter Infotech offloading its entire stake in Nazara, according to regulatory filings. This move marks a notable shareholding change in the gaming firm, reflecting activity by key promoter and investor groups 1.
The bulk deal saw Zerodha purchase 1,200,000 shares of Nazara Technologies at ₹775 per share, totaling ₹93 Cr. These shares were sold by Mitter Infotech, a promoter group entity of Nazara, which fully exited its holding through this transaction, as per stock exchange disclosures. This complete exit by Mitter Infotech highlights a significant promoter stake transfer 1.
Founded in 2000 by Nitish Mittersain, Nazara Technologies operates across gaming, esports, and ad-tech sectors. The company went public in 2021 and is listed on both NSE and BSE. Its portfolio includes subsidiaries such as Nodwin Gaming, Sportskeeda, and Halaplay, serving a global user base on mobile and digital platforms, establishing it as a key player in India’s gaming space 1.
Zerodha, India’s largest retail brokerage by active clients, has been broadening its investment portfolio beyond core brokerage services. Founded in 2010 by Nithin Kamath and Nikhil Kamath, the firm has previously invested in startups and listed companies, leveraging its extensive retail investor base and market expertise to expand its financial footprint 1.
Mitter Infotech, the selling entity, is part of Nazara Technologies’ promoter group. The exit of a promoter entity via a bulk deal often indicates strategic realignment or capital reallocation. However, neither Nazara nor Mitter Infotech has issued any statement explaining the rationale behind this stake sale, leaving the reasons undisclosed 1.
The transaction was executed on the National Stock Exchange (NSE) and disclosed under bulk deal regulations, which require reporting trades exceeding 0.5% of a company’s equity shares. Zerodha’s acquisition accounts for roughly 0.8% of Nazara’s total equity, based on the company’s shareholding pattern as of March 2024, reflecting a sizable minority stake 1.
Nazara Technologies has been actively expanding its esports and gaming ecosystem through acquisitions such as Pro Football Network and Publishme. The company reported consolidated revenue of ₹456 Cr for fiscal year 2023, with a net profit of ₹12 Cr, demonstrating growth in its gaming and ad-tech verticals amid competitive market conditions 1.
Zerodha’s investment in Nazara aligns with a broader trend of Indian brokerages diversifying into equity ownership. Known for its zero-brokerage model on equity investments, Zerodha has built a customer base exceeding 10 million active users, making it a significant participant in India’s retail trading landscape and an emerging investor in listed gaming companies 1.