Discount brokerage Zerodha Broking Ltd has purchased over 35 lakh shares in Indian gaming firm Nazara Technologies, spending around ₹93 crore. This acquisition forms part of a larger bulk deal involving Nazara’s promoter group, Mitter Infotech LLP, which sold a substantial stake in the company.
- Zerodha buys 35 lakh shares of Nazara for ₹93 crore
- Promoter group Mitter Infotech sells over 1.9 crore shares
- Zerodha cofounders’ combined stake in Nazara nearly triples in one year
What happened
Zerodha Broking Ltd acquired over 35 lakh shares of Nazara Technologies at ₹265.85 per share, totaling a purchase price of approximately ₹93.05 crore. The transaction took place as part of a bulk deal on May 15, involving significant movement of shares among key investors and promoters. Another important buyer, Axana Estates, a partnership involving CaratLane’s founder and a wealth management partner, purchased 1.48 crore shares valued at ₹392.9 crore.
On the sell side, Nazara’s promoter group entity Mitter Infotech LLP sold substantial shares totaling around 1.93 crore across the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). As of the March quarter end, Mitter Infotech held a 6.09% stake in Nazara, equivalent to 2.26 crore shares, making this a significant reduction in promoter holdings.
Why it matters
This bulk deal marks a notable shift in the promoter and shareholder makeup of Nazara Technologies, a key player in the Indian gaming sector. The exit by Mitter Infotech indicates a strategic move by the existing promoter group, while Zerodha’s acquisition reflects increased confidence and commitment from retail brokerage stakeholders heavily involved in tech stocks in India.
Zerodha’s cofounders, Nikhil and Nithin Kamath, already held a substantial stake in Nazara, controlling over 3.5% of the company prior to this deal. Their holdings have almost tripled compared to last year, showing long-term bullishness in the company’s prospects. This is significant as Zerodha typically maintains direct holdings in only a few select stocks, highlighting Nazara’s strategic importance to them.
What to watch next
Investors will be closely monitoring Nazara Technologies’ stock performance, as the bulk deals have already triggered volatility. The stock rose sharply during the day on the news, reaching an intraday high before settling slightly lower. Further movements will depend on how the market absorbs these changes in promoter and institutional ownership.
Additionally, the intentions of the new and existing stakeholders, particularly Zerodha and Axana Estates, will be watched to assess their future plans for influence over Nazara. Monitoring corporate announcements and financial results will provide insight into whether this shareholding reshuffle signals strategic shifts or consolidation in the gaming company’s long-term outlook.