Shares of the newly listed online gaming company - Nazara Technologies - rose as much as 4.35 per cent to hit an intraday high of Rs 2,165.35 after its independent subsidiary NODWIN Gaming acquired gaming and adjacent intellectual property (IP) business of OML Entertainment. NODWIN Gaming has agreed to buy the gaming and adjacent IP business of OML Entertainment for consideration of Rs 73 crore. "The transaction will provide partial liquidity to OML Entertainment shareholders, including CA Media. Ajay Nair, MD of OML Entertainment, will join the NODWIN Gaming board as part of this transaction and will work with Akshat Rathee, MD of NODWIN Gaming and the NODWIN Gaming management team to ensure smooth integration of the OML IPs with NODWIN Gaming and help with growing NODWIN Gaming's business," Nazara Technologies said in a press release.
"This acquisition taps into a growing synergy between the two companies. While NODWIN Gaming is known for its esports and gaming expertise. OML Entertainment is known for managing some of India's biggest gaming & entertainment creators such as Tanmay Bhat, Samay Raina, Suhani Shah, etc. and for owning and executing storied IPs such as the Bacardi NH7 Weekender," Nazara Technologies said.
"Today's youth demand an increasingly diverse and engaging experience as the lines between gaming, esports, comedy and music become blurred, and gaming becomes more mainstream. This transaction allows NODWIN Gaming to massify gaming and esports by tapping into emerging synergies in gaming entertainment that a 14-30-year-old is looking for," the Mumbai-based company added.
Nazara Technologies shares have more than doubled from the IPO price of Rs 1,101 to hit record high of Rs 2,239.90. Nazara Technologies, backed by ace investor Rakesh Jhunjhunwala, sold shares via initial public offering (IPO) between March 17-19 and the issue was subscribed 175.46 times
As of 11:48 am, Nazara Technologies shares traded 3.35 per cent higher at Rs 2,145.50, outperforming the Sensex which was trading on a flat note.