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Gaming and entertainment company Nazara Technologies‘s promoter Mitter Infotech LLP has sold 48,84,000 equity shares, representing 6.38% of the issued share capital, to Plutus Wealth Management LLP through an on-market transaction in the block deal window of the stock exchange on May 27, 2024.

The block trade will provide liquidity for the promoters who have dedicated 25 years to the company’s growth, according to a statement. The promoters will retain control of the company, with Nitish Mittersain continuing in his current role as CEO and joint managing director, it stated.

Plutus Wealth Management LLP is a boutique proprietary investment firm which has been an investor in Nazara since 2020, pre-IPO. Plutus has demonstrated strong confidence in the company’s prospects by increasing its shareholding via this block trade, the statement read.

“Plutus Wealth Management LLP has been a long term investor in Nazara since the pre-IPO days and has actively participated in subsequent fund raises as well,” said Vikash Mittersain, Promoter, Nazara Technologies Limited.

“This transaction represents a resounding vote of confidence by Plutus in Nazara’s long-term growth prospects, its promoters and management,” he added.

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Commenting on the increase in stake in Nazara, Arpit Khandelwal, Managing Partner of Plutus Wealth Management LLP, “This decision underscores our strong conviction in the phenomenal growth opportunity that the sector offers and our confidence in Nazara’s diversified product portfolio, talented team, and unique competitive position.

“With its expanded presence in various international markets and global partnerships, Nazara is a notable example of an Indian games company that has been successful in going global … We look forward to actively supporting the management team as they execute on their growth strategy and aggressively accelerate progress towards achieving their long-term objectives,” he added.

The gaming company’s Q4 profit plummetted 98% year on year to Rs 18 lakh, down from Rs 9.4 crore in the comparable period a year ago. For FY24, its profit rose 21.8% to Rs 74.75 crore, compared with Rs 61.4 crore earned in FY23.