Nazara Technologies IPO Details and Review

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Nazara IPO

Nazara IPO: Key Details

  • Grey Market Premium (GMP) today: ₹900 – ₹950
  • Raised 261 Crore via anchor investor sale at ₹1,101 per share

Note: We neither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.

Company Information

Nazara Technologies Limited, incorporated in 1999, is the leading India based diversified gaming and sports media platform with presence in India and across emerging and developed global markets such as Africa and North America, and offerings across the interactive gaming, eSports and gamified early learning ecosystems including World Cricket Championship (WCC) and CarromClash in mobile games, Kiddopia in gamified early learning, Nodwin and Sportskeeda in eSports and eSports media, and Halaplay and Qunami in skill-based, fantasy and trivia games.

Their goal is to cater to billion-plus mobile internet players across emerging markets who have embraced social multiplayer interactive gaming as the foremost form of entertainment. They seek to achieve this by providing interactive mobile games, eSports content and gamified early learning apps which are entertaining, locally relevant and result in positive engagement and longer retention of users of their platform.

Competitive Strengths

  • Leadership position in a diversified and scalable business.
  • Portfolio of premium intellectual property and content across regions and businesses
  • A large and engaged community of users, with attractive monetization opportunities
  • Successful inorganic growth through strategic acquisitions
  • Profitable platform model benefitting from India growth story with limited regulatory risk
  • Strong leadership team backed by marquee investors

Company Strategy

  • Continue to build on the leading market position and growth opportunity in India
  • Continue global expansion leveraging the existing distribution network
  • Enhance existing offerings and increase monetization opportunities
  • Launch new IP and titles across content and games
  • Pursue strategic investment and acquisition opportunities
  • Continue to drive operations based on people-centric policies and practices
  • Further build the existing technology stack to enhance existing platform

Proceeds from Nazara IPO will be used to:

Nazara will not directly receive any proceeds from the Offer and all the Offer Proceeds will be received by the Selling Shareholders, in proportion to the Offered Shares sold by the respective Selling Shareholders as part of the Offer

Nazara IPO: Financials

201820192020 Mar2020 Sep
Revenue from Ops₹172.04 Cr₹169.70 Cr₹247.51 Cr₹200.46 Cr
Profit before exep.*₹48.57 Cr₹10.87 Cr₹(20.82) Cr₹(8.17) Cr
Profit after Tax1.02 Cr₹6.71 Cr₹(26.62) Cr₹(10.11) Cr
EPS (Basic)1.056.39(0.77)(1.78)
*Exceptional Items
As of March 2020EPS (Weighted)P/E (Floor)P/E (Cap)
Based on basic EPS1.92572.92573.43

Nazara IPO: Comparison with listed industry peers

As per RHP, there are no listed companies in India that engage in a business similar to that of Nazara. Accordingly, it is not possible to provide an industry comparison in relation to the Company.

Nazara IPO Dashboard

Issue Details

TypeValue
Issue Size₹582.91 Cr
Offer for Sale₹582.91 Cr
Face Value₹4/- per Equity Share
IPO Price₹1,100 – ₹1,101
Lot Size13 shares
LotsMin 1 – Max 13

Key Dates

Date TypeDate
Bid Open17/03/2021
Bid Close19/03/2021
Allotment Finalization24/03/2021
Initiation of Refunds25/03/2021
Credit of Shares26/03/2021
Listing Date30/03/2021

Lot Size and Price

LotsSharesAmount
113₹14,313
13169₹1,86,069

Promoter Holding

HoldingPercentage
Pre-Issue24.16%
Post-Issue20.70%
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Nazara IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB75%[●]*
NII15%[●]
RII (Retail)10%[●]
Total100%[●]
*Shares left for subscription post anchor investor sale of [●] crores

Nazara IPO: Risks

  • Nazara is a company with global operations and subjects to risks and uncertainties of conducting business outside India
  • Success is tied to the continued use of the internet and smartphones, and the reliability and adequacy of online infrastructure in India and emerging markets and data pricing
  • Any inability to protect IP or any third-party claims in relation to infringement of the existing intellectual property rights or in the future could materially adversely affect business
  • Inability to cater to the evolving consumer preferences, in India and abroad, in the mobile games industry, may affect our business
  • Company’s ability to acquire, synergise or consolidate and manage complementary businesses, assets and technologies may result in operating difficulties and other adverse consequences

For complete internal and external risk factors, you can refer the RHP and DRHP of the company.

Nazara IPO: Registrar and Lead Managers

Registrar of the Issue

Link Intime India Private Limited
C-101, 1st floor, 247 Park
L. B. S. Marg, Vikhroli West
Mumbai 400 083, Maharashtra, India

Phone:(91 22) 4918 6200
Email: [email protected]

Lead Managers of the Issue

ICICI Securities Limited
IIFL Securities Limited
Jefferies India Private Limited
Nomura Financial Advisory and Securities
(India) Private Limited

Phone: +91-22-2288 2460 / +91-22-4646 4600
Email: [email protected]

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