Indiagames to offload majority stake

The promoters of Indiagames, the Mumbai-based multi-platform games company, is in the process of offloading majority stake.

Indiagames' current investors are Infinity Technology Investment and IL&FS Investment managers.

Indiagames founder and director Vishal Gondal told Business Standard that the company has received proposals from many probable buyers. He, however, refrained from divulging further details.

Sources close to the development said a Nasdaq-listed Hong Kong-based company has emerged as frontrunner to pick up the majority stake.

In addition to the proposed divestment of the promoters stake, Indiagames has been in the process of raising funds from 3i and BV Capital to the tune of $7-8 million.

As per the agreement, 3i and BV Capital would chip in half of their investment to buy out the entire stake of Infinity Technology Investment as well as a partial stake of IL&FS Investment Managers.

Gondal said Indiagames was in the final stage of due diligence with 3i and BV Capital. An official term sheet has been signed between Indiagames and the two companies. E&Y has been mandated for the fund raising.

Promoted during the Internet boom, Indiagames raised its first round of funding from Infinity Technology Investment and IL&FS Investment Managers four years ago.

It is recognised as one of the few companies from that time which has evolved from providing Internet gaming to providing wireless gaming solutions across all platforms.

Indiagames has recently forayed into the gaming console market through a co-production agreement with the British design team Short Fuze for an action adventure title "Ashoka." The company derives 90 per cent of its revenues from the mobile gaming space.