Nazara IPO: Key Details
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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
| 2018 | 2019 | 2020 Mar | 2020 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 Tax | ₹1.02 Cr | ₹6.71 Cr | ₹(26.62) Cr | ₹(10.11) Cr |
| EPS (Basic) | 1.05 | 6.39 | (0.77) | (1.78) |
| As of March 2020 | EPS (Weighted) | P/E (Floor) | P/E (Cap) |
|---|---|---|---|
| Based on basic EPS | 1.92 | 572.92 | 573.43 |
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
| Type | Value |
|---|---|
| Issue Size | ₹582.91 Cr |
| Offer for Sale | ₹582.91 Cr |
| Face Value | ₹4/- per Equity Share |
| IPO Price | ₹1,100 – ₹1,101 |
| Lot Size | 13 shares |
| Lots | Min 1 – Max 13 |
Key Dates
| Date Type | Date |
|---|---|
| Bid Open | 17/03/2021 |
| Bid Close | 19/03/2021 |
| Allotment Finalization | 24/03/2021 |
| Initiation of Refunds | 25/03/2021 |
| Credit of Shares | 26/03/2021 |
| Listing Date | 30/03/2021 |
Lot Size and Price
| Lots | Shares | Amount |
|---|---|---|
| 1 | 13 | ₹14,313 |
| 13 | 169 | ₹1,86,069 |
Promoter Holding
| Holding | Percentage |
|---|---|
| Pre-Issue | 24.16% |
| Post-Issue | 20.70% |
Nazara IPO: Investor Quota and Shares Offered
| Investor Type | Quota | Shares on Offer |
|---|---|---|
| QIB | 75% | [●]* |
| NII | 15% | [●] |
| RII (Retail) | 10% | [●] |
| Total | 100% | [●] |
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]
