Following the receiving of a letter of intent (LOI) for the acquisition of Smaaash Entertainment, Nazara Technologies Ltd. saw a significant increase in its share price.

The acquisition, which is now going through an insolvency process, was possible after Nazara Technologies revealed that the resolution plan it had presented had been approved by the Committee of Creditors of Smaaash Entertainment Private Limited.

The Corporate Insolvency Resolution Process (CIRP) is said to be a continuous process that includes this strategy.

This makes the company's bid success a major turning point in its expansion plan.

Nazara Technologies was formally designated as the successful resolution applicant after receiving the letter of intent (LOI) from Smaaash Entertainment's resolution professional this month.

Soon after this announcement, Nazara Technologies saw a stock surge by five percent, peaking at Rs 957.65 per share on the NSE.

The company views it as a good step, even while the transaction is observed to be still subject to the conditions mentioned in the letter and needs clearance from additional regulatory bodies as well as the National Company Law Tribunal (NCLT).

It’s reported that completing these stages is crucial to bringing Smaaash Entertainment into Nazara's portfolio and completing the acquisition process.

Similarly, Nazara Technologies also revealed that through its Absolute Tech, a subsidiary, had purchased the assets of DeltiasGaming.com.

Through this purchase, Nazara Technologies plans to strengthen the subsidiary's position in the US gaming content publishing market.

The transaction is anticipated to be complete within the next 45 days.

An all-cash payment of $900,000 (about Rs.7.5 crore) was signed for the asset acquisition agreement. This amount is due in one or more tranches.

For the year ending in June 2024, DeltiasGaming.com reported revenues of $575,000, or roughly Rs.4.8 crore.

Deltias has a sizable monthly readership of about 1.5 million, and Absolute Sports intends to capitalize on that brand equity.

Furthermore, the acquisition will give Absolute Sports access to Deltia's Twitch and YouTube following, expanding their online presence and ability to interact with gamers.

The strategic actions of Nazara Technologies Ltd. resulted in a five percent increase in share price this week. The stock has performed admirably in 2024, giving investors double-digit gains and demonstrating a high level of market trust in the company's growth prospects.