Nazara Technologies Share: Bought this company for Rs 126 crore - keep an eye on the stock

News Topical, Digital Desk : Gaming company Nazara Technologies has informed that it has completed the acquisition of sports entertainment startup Smaaash Entertainment. The acquisition was completed under the corporate insolvency resolution process approved by the Mumbai bench of the National Company Law Tribunal (NCLT). Nazara Technologies has informed in an exchange filing that the company has acquired 100 per cent stake in Smaaash Entertainment for Rs 126 crore. Smaaash Entertainment is an Indian gaming and entertainment center that combines sports simulation, virtual reality and dining into an immersive experience. It was founded in 2012 by Shripal Morakhia.

In a filing to the exchanges, Nazara Tech has bought 1 crore equity shares at Rs 10 per share, making Smaaash a wholly-owned subsidiary. Nazara has also extended an unsecured inter-corporate loan of Rs 116 crore to Smaaash for creditor settlement. The acquisition is part of the approved resolution plan under the IBC.

Whose dues are due to the company? Nazara has made this bid to buy Smaaash at a time when NCLT has initiated bankruptcy proceedings against the sports entertainment company in May 2022. The proceedings have been initiated for dues to creditors such as Edelweiss ARC, Yes Bank, SIDBI and Mabella Investment Advisors. The company alone owes about Rs 452 crore to Edelweiss. 

Share performance On Friday, the company's stock closed at Rs 1,237.70, down 0.13 per cent. In the last one year, the company's stock has seen a gain of 52.73 percent. The 52-week high of the stock is Rs 1,326.50.
 

Read More: Do you really get more returns from investing in gold than the stock market? Understand this from the data