Nazara Tech shares surge 18% after block deal; sources say Nikhil Kamath among likely buyers

Shares of Nazara Technologies Ltd. gained on Friday, May 15, after they witnessed a large trade in the morning. As much as 4.9% of its equity exchanged hands via block deals on Friday.

Zerodha's Nikhil Kamath and existing shareholder Axana Estates are likely the buyers in the block deals, people in know told CNBC-TV18.

The founder Nitish Mittersain is likely the seller in Friday's block deals, sources added.

At the end of the March quarter, promoters Nitish Mittersain held 2.18% stake in the company and Axana Estates LLP held 5.4% stake in the company

On another note, Mittersain, who is also the joint MD and CEO of the Mumbai-based gaming company, on Wednesday told CNBC-TV18 that Nazara Tech is expecting organic growth of 15-20% in FY27 with margins in the core gaming business rising to nearly 25% by the fiscal end from 19.5% in the March quarter.

The company reported a net profit of ₹55.7 crore in the fourth quarter from 4.1 crore in the previous year. Its revenue declined 23.5% to ₹397.8 crore, while its EBITDA more than doubled to ₹74 crore and EBITDA margin expanded to 18.6% from 6.7% in the year-ago period.

Shares of Nazara Tech gained 18% to hit an intraday high of ₹314 apiece on Friday. This is its biggest single day gain since August 1, 2022 when it had surged 20%.

The stock was up 16.11% at ₹308.85 apiece around 11:11 am. It has gained 20.3% in the past month.

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