Zerodha’s Nikhil Kamath looking to buy more stake in Nazara Tech: Exclusive
Zerodha promoter Nikhil Kamath is looking to buy more stake in gaming company Nazara Technologies as he wants to own a 3.5 percent stake in the firm, sources told CNBC-TV18
Zerodha promoter Nikhil Kamath is looking to buy more stake in gaming company Nazara Technologies, sources told CNBC-TV18 on September 1.
Kamath, who has already bought a percent stake in Nazara Tech, is looking to buy a total of 3.5 percent stake in the firm in his personal capacity, sources said. They added that talks with Nazara Tech are on and the deal is expected to close soon.
The development comes ahead of Nazara Tech’s board meeting due on September 4.
Nazara Tech has refused to comment on the “speculation” as of now.
Kamath is betting on the growing gaming industry at a time when the Indian gaming market is expected to grow from $2.8 billion in 2022 to $5 billion in 2025, growing at a CAGR of 28-30 percent.
At 11:47 am, the Nazara Tech stock was trading marginally higher at Rs 779.20 on BSE. The stock has jumped 50 percent in the past six months as against benchmark index Sensex, which has risen a little over nine percent during the period.
In the first quarter of FY24, Nazara Tech’s gaming revenue went up 24 percent on a year-on-year basis, with e-sports revenue up 15.2 percent and ad tech down 16 percent.
Sources say Kamath could also be eyeing a stake in Indian gaming firm Nodwin Gaming led by Akshat Rathee, though deal talks are in the infancy stage at present. NODWIN Gaming is sSouth Asia’s leading e-sports company established in 2015.
Kamath is also interested in a few other gaming companies overseas but deals are yet to close, sources added.
According to the World Economic Forum (WEF), mobile devices are the primary drivers of India's gaming industry. Affordable internet and the availability of faster smartphones with enhanced gaming capabilities have also fuelled the market.
The number of gamers in the country is expected to expand from 420 million in 2022 to hit 500 million by 2025.
First Published: Sept 1, 2023 10:20 AM IST
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