Nazara Technologies Limited has strengthened its control over subsidiary Next Wave Multimedia Private Limited by acquiring additional equity shares worth ₹2.50 crores. The transaction, completed on December 30, 2025, represents a strategic move to consolidate the company's ownership in its subsidiary operations.

Acquisition Details

The gaming and sports media company acquired 1,396 equity shares of Next Wave Multimedia at ₹100 per share, representing a 4.19% stake in the subsidiary. The total consideration paid for this acquisition amounted to ₹2,50,02,985.

Ownership Structure Enhancement

Following this acquisition, Nazara Technologies' equity holding in Next Wave Multimedia has increased significantly. The company's ownership stake has risen from 83.25% to 87.44%, further consolidating its control over the subsidiary's operations and strategic direction.

Transaction Framework

The acquisition was executed pursuant to the Share Purchase Agreement dated May 24, 2024, including its addendum. The sellers in this transaction were the founding shareholders of Next Wave Multimedia, comprising:

• Mr. P.R Rajendran
• Ms. R Kalpana
• Ms. P.R Jayashree

These founding shareholders collectively sold their stake to Nazara Technologies as part of the structured acquisition process outlined in the original agreement.

Regulatory Compliance

Nazara Technologies disclosed this acquisition to BSE Limited and National Stock Exchange of India Limited in compliance with Regulation 30 of SEBI Listing Regulations. The company had previously made a disclosure on November 13, 2025, regarding developments related to this subsidiary acquisition process. This transparency ensures shareholders and market participants remain informed about significant corporate developments that may impact the company's business operations and financial performance.

Nazara Technologies has undertaken a comprehensive portfolio restructuring and outlined an ambitious growth strategy centered on artificial intelligence integration and global intellectual property expansion. The gaming company has completed significant organizational changes while setting aggressive financial targets for the coming years.

Portfolio Restructuring and Strategic Reset

The company has completed a major portfolio reset involving the de-subsidiarisation of Nodwin and impairments of PokerBaazi and Freaks4U operations. This restructuring initiative was specifically undertaken to improve earnings quality and enhance business visibility for stakeholders.

Growth Strategy and Brand Positioning

The core gaming business is expected to anchor future growth with structurally higher EBITDA margins ranging between 20-25%. The company has refreshed its Enter Magic brand to reinforce its strategic push toward AI-enabled, immersive gaming experiences.

Management views ownership of scalable global intellectual properties as the key long-term competitive moat. The company is actively evaluating larger, IP-led global acquisitions that would be funded through a strategic mix of accruals, debt, and equity financing.

Operational Excellence and Global Execution

With over 90% of revenues generated from overseas markets, the company's execution strategy centers on compounding growth through multiple operational levers:

• LiveOps Intensity: Enhanced live operations to maximize player engagement
• AI-Driven Efficiency: Artificial intelligence integration for operational improvements
• New IP Rollouts: Strategic launch of fresh intellectual properties
• Centres of Excellence: Supporting scalable execution without integration risks

Financial Projections and Growth Outlook

Analysts have established robust financial forecasts reflecting the company's strategic positioning and operational improvements. The projections indicate significant acceleration in both revenue and profitability metrics.

The faster EBITDA growth compared to revenue expansion is expected to be driven by mix improvement, operating leverage benefits, and AI-led productivity gains across the organization.

Risk Factors and Market Considerations

Despite the positive outlook, several key risks could impact the company's growth trajectory:

• Execution Challenges: Potential difficulties in implementing IP-led merger and acquisition strategies
• Gaming IP Volatility: Inherent unpredictability in gaming intellectual property performance
• Regulatory Changes: Platform policy modifications that could affect monetization capabilities and capital efficiency

With portfolio cleanup largely complete and execution improvements visible across mobile gaming, PC/console platforms, advertising technology, and offline gaming segments, the company appears positioned for a more durable growth cycle with improving return metrics and enhanced earnings predictability.