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Nazara Reduces Stake in Nodwin Ahead of Fundraising
Nazara Reduces Stake in Nodwin Ahead of Fundraising

Entrepreneur

time4 days ago

  • Business
  • Entrepreneur

Nazara Reduces Stake in Nodwin Ahead of Fundraising

After the funds are raised, Nodwin will be called an associate company instead of a subsidiary. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Nazara Technologies said on Wednesday that it will no longer keep majority control of its company Nodwin Gaming. This step is being taken as Nodwin plans to raise money from current investors to grow its business in esports and youth media. To help with the fundraising, Nazara's board has agreed to give up some special rights it held over Nodwin. This change will give Nodwin more freedom to run its business and raise money on its own. The board has also agreed to remove Nodwin from its list of main companies, but this will need approval from shareholders at a meeting on August 13. After the funds are raised, Nodwin will be called an associate company instead of a subsidiary. Nazara first bought a 55 percent share in Nodwin Gaming in January 2018 through a mix of cash and company shares. Since then, Nazara has added more money to support Nodwin's growth. The latest investment was in December last year, when Nazara put in INR 64 crore to help Nodwin grow its business and brands. This is the second time an Indian listed company has reduced its stake in a smaller company to below 50 percent. PB Fintech recently cut its stake in PB Healthcare Services from 100 percent to 26 percent after a funding round, though it still invested in that round. This shows that Indian tech companies are looking for more flexible ways to grow and manage their money.

Nazara's stake in Nodwin to drop below 50% after internal fundraise
Nazara's stake in Nodwin to drop below 50% after internal fundraise

Business Standard

time5 days ago

  • Business
  • Business Standard

Nazara's stake in Nodwin to drop below 50% after internal fundraise

Nazara Technologies, the only publicly listed gaming company in India, will cease to be the majority shareholder in its subsidiary Nodwin Gaming, as Nodwin prepares for an internal fundraise. Nodwin will be reclassified as an associate company from its current status as a subsidiary following the fundraise. Nodwin is raising fresh capital from certain existing shareholders. However, Nazara will not participate in the proposed funding round in Nodwin. Nazara's stake in Nodwin is expected to fall below 50 per cent. It will, however, remain the largest shareholder in Nodwin even after the de-subsidiarisation. 'The proposed capital raise will result in the shareholding of the company (Nazara) in Nodwin falling below 50 per cent. Further, in order to support Nodwin's next phase of growth and provide it with the operational and financial flexibility needed to raise timely funding, the company has also decided to waive certain controlling and restrictive rights it currently holds as the majority shareholder,' it said. Nodwin's fundraise comes at a time when the company plans to 'pursue aggressive growth in its e-sports and youth media business'. In December 2024, the Nazara board had approved an investment of Rs 64 crore in Nodwin. Nazara had acquired a majority stake of 55 per cent in Nodwin Gaming in 2018. It had then said that it planned to leverage its investments in the mobile and digital sports category to build intellectual properties (IPs) in the e-sports space along with Nodwin in categories such as soccer, cricket, and other traditional sports.

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