Share of gaming and sports media platform Nazara Technologies rose over 5% in early trade today after the Rakesh Jhunjhunwala-backed firm acquired Hyderabad-based skill-based gaming company OpenPlay for about Rs 186 crore.
Nazara Technologies share has risen for the third consecutive session. The stock climbed up to 5.49% to Rs 1,805 against previous close of Rs 1,711 on BSE.
Total 6,187 shares changed hands amounting to turnover of Rs 1.10 crore on BSE.
Market cap of the firm rose to Rs 5,407 crore.
The company said it acquired Hyderabad-based OpenPlay for Rs 186.41 crore. Nazara’s Board has approved the acquisition of OpenPlay Technologies from its existing shareholders – Sreeram Reddy Vanga and Unnati Management Consultants LLP – at a consideration of Rs 186.41 crore, in one or more tranches, a regulatory filing said.
“In the first tranche of the strategic investment, the company shall acquire 23.30 per cent of the issued and paid-up share capital of OpenPlay for a consideration of Rs 43.43 crores, by end of Q2 of FY 2021-22,” it added.
The share ended in the green in last two sessions after global brokerage Jefferies gave a buy call to the Jhunjhunwala-backed firm. At the end of June quarter, Jhunjhunwala held 10.82% stake or 32.94 lakh shares in the gaming platform.
Jefferies is the first global research house to recommend a ‘buy’ on the stock. Jefferies has an upside scenario price target of Rs 2,300 apiece and a downside scenario price target of Rs 1,400 on the Nazara Tech share.
The firm is India-based gaming and sports media platform and known for its games on World Cricket Championship, Chhota Bheem and Motu Patlu series.