Nazara Tech completes ₹150 Crore investment in Moonshine Tech

27 Sep 2024 , 02:42 PM

Nazara Technologies has finalised its ₹150 Crore investment in Moonshine Technology, the parent firm of the online poker platform PokerBaazi. The transaction, announced on September 12, is the second part of Nazara’s ₹982 Crore deal to acquire a major interest in Moonshine.

According to an allotment letter received by the firm on September 26, Nazara, which is sponsored by Rekha Jhunjhunwala, invested ₹150 Crore in Moonshine by subscribing to 2.87 lakh compulsory convertible cumulative preference shares. As of the most recent update, Rekha Jhunjhunwala owned an 8.37% interest in Nazara Technologies.

Nazara Technologies’ stock price decreased on Friday, September 27. It was trading at ₹979, down 1.1% from its previous close. The stock has gained 18% in the last year, with a market value of approximately ₹7,500 Crore, trailing the benchmark Nifty 50 index. Nazara’s shares fell as much as 36% between January and May of this year due to profitability concerns and a decline in institutional shareholding.

Earlier, Nazara Technologies announced plans to pick up a 47.7% share in Moonshine for ₹831.5 Crore. ₹592.26 Crore will be paid in cash, while ₹239.25 Crore will be paid through a share transfer, resulting in a 3.17% holding in Nazara.

Nazara’s aggressive push into online skill gaming occurs when the industry faces severe regulatory obstacles. The 28% Goods and Services Tax (GST) on online gaming, which was implemented in October 2022, has been a major impediment for enterprises functioning in the industry. The levy, which applies to the total value of bets placed rather than just the platform’s earnings, has generated concerns about profitability and sustainability among many operators.

Despite this, Nazara has decided to proceed with its investments, citing the sector’s long-term potential. 

The Moonshine venture is part of Nazara’s overall acquisition plan to broaden its gaming portfolio and expand worldwide. In recent years, the corporation has been very active in the mergers and acquisitions space. Nazara has acquired the Indian Comic Con franchise, Publishme, a marketing organisation focused on West Asia and Turkey, Branded, an events company based in Singapore, and Ninja Global, a Turkish esports firm.

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