·  Nazara’s stake in Nodwin to drop below 50% after skipping internal fundraise

·  Nodwin reclassified as an associate company, pending EGM approval on August 13

·  Nazara shifts focus to core gaming IPs, relinquishes control rights in Nodwin

Publicly listed gaming and esports firm Nazara Technologies made the announcement through a stock exchange filing that it will stay out of Nodwin Gaming's future internal fundraising round.

Although Nazara is not offloading any of its present shares, skipping the new capital injection will dilute its holding below 50%, leading Nodwin to change from being a subsidiary to an associate company on the books of Nazara. This takeover will be completed subject to shareholder sanction in an Extraordinary General Meeting (EGM) held on August 13.

Even with the dilution, Nazara will still be Nodwin's biggest shareholder.

As part of this structural shift, Nazara's board has approved the divestment of some controlling and limiting rights in Nodwin like control over important strategic decisions. This is a step in line with Nazara's strategic shift to concentrate on its primary gaming IPs, instead of non-core verticals such as esports services.

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Nazara had previously invested Rs 64 crore (approx. $7.5 million) in Nodwin in December 2024 to fuel growth and IP creation. It initially bought a 55% majority stake in 2018, making it a incremental investment over the years.

In 2015, Akshat Rathee and Gautam Virk founded Nodwin Gaming, which has since become one of South Asia's largest gaming companies, hosting big tournaments, creating gaming content, handling influencers, and hosting live esports events in India as well as overseas markets.

The firm is supported by investors such as Krafton, JetSynthesys, Sony Group, and Innopark. In May 2023, Nodwin had raised $28 million at a post-money value of $349 million, allowing it to grow organically as well as through acquisition.

Recent highlights include the India buyout of AFK Gaming and Trinity Gaming, along with international transactions in Germany and Turkey. In October 2024, Nodwin organized the PUBG Mobile National Championship finals in Uzbekistan, the nation's biggest esports event, and also handled multilingual broadcast content for the Esports World Cup in Riyadh, with remote operations coordinated from its Hyderabad studio.