Zerodha’s Nikhil Kamath-backed Nazara Technologies’ shares rise after NCLT clears Smaaash acquisition

Shares of Nazara Technologies Ltd. gained in Thursday’s session after the company received approval from the National Company Law Tribunal (NCLT), Mumbai, for its acquisition of Smaaash Entertainment Pvt. Ltd. The gaming and sports media firm also announced the completion of its stake sale in subsidiary Openplay Technologies, adding momentum to the stock.

Nazara shares opened largely flat at ₹1,073 on the BSE but climbed as much as 2.8% in morning trade to touch an intraday high of ₹1,103.70. As of 12:48 PM, the stock was trading at ₹1,085.70, up 1.35%, bucking the broader market trend. The move followed back-to-back disclosures to the exchanges outlining the resolution plan approval and a completed strategic divestment.

In an exchange filing, Nazara has said that the NCLT had approved its resolution plan for the acquisition of Smaaash Entertainment, a sports-centric immersive entertainment company that was undergoing corporate insolvency proceedings under the Insolvency and Bankruptcy Code. The tribunal's order, dated May 7, 2025, comes with a modification to the effective date terms, but otherwise clears the way for the deal to proceed. The company did not disclose the financial contours of the acquisition in the latest release.

“The Resolution Plan submitted by the Company for acquisition of Smaaash Entertainment Private Limited, a company undergoing Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016, has been approved by the National Company Law Tribunal, Mumbai by an order pronounced on May 07, 2025, subject to a modification of the provisos to the term effective date,” Nazara said in the exchange filing.

Nazara also informed the exchanges on May 7 that it has completed the sale of its 94.86% stake in Openplay Technologies to Moonshine Technology Pvt. Ltd., an associate company. The consideration of ₹104.34 crore was discharged via the issuance of 199,890 compulsory convertible preference shares by Moonshine. Following the transaction, Openplay ceases to be a subsidiary of Nazara, which now holds a 46.07% equity interest in Moonshine.

These developments are part of Nazara’s ongoing strategy to streamline operations and consolidate growth through strategic bets.

Nazara, which is India’s first gaming public to go public, had earlier announced the successful closure of a ₹250 crore funding round, securing capital from a mix of new and existing investors, including Zerodha co-founder Nikhil Kamath , Plutus Wealth, and ICICI Prudential Mutual Fund. This fundraise had marked the final leg of the ₹750 crore capital infusion plan the company had initiated in 2023.