A block deal involving 48.84 lakh shares of Nazara Technologies, representing a 6.38 percent stake in the company took place on the exchanges on May 27.

The company stated that it was promoter Mitter Infotech that sold the shares to Plutus Wealth Management through a block deal. Plutus Wealth Management has been a pre-IPO investor in Nazara Tech since 2020.

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.

Meanwhile, shares of the gaming company surged 4.5 percent after the block deal, the biggest jump in 19 weeks, with the stock hitting a 52-week high of Rs 642 on the NSE.

Follow our live blog for all the market action

After the block deal, Mitter Infotech's stake in the gaming company stands at 10 percent, with the promoters having no plans to sell shares further. The stake sale was done to provide some liquidity to the promoters.

The gaming and sports media company reported a net profit of Rs 18 lakh last week, recording a a significant drop from Rs 9.4 crore in the year-ago period. The sharp decline in the bottomline was caused by a loss of Rs 16.87 crore from discontinued operations during the quarter due to result of write-offs in many of the company's legacy businesses including its real-money gaming business Halaplay.

Likewise, revenue fell 8 percent on year to Rs 266.2 crore for the quarter, down from Rs 289.3 crore in the year-ago period.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

See Also :