Nazara Technologies IPO Review 2021: The Nazara Technologies Ltd IPO opens on 17th March and closes on 19th March 2021. In this article, we cover the Nazara Technologies Ltd IPO Review and look into important IPO information and find out the possible prospects of the company. Read the complete article which will take 5 minutes to answer the question, Should you subscribe?  

Nazara Technologies IPO Review – About the Company

Nazara Technologies Ltd logo

Founded in 1999 by Nitish Mittersain, Nazara Technologies Ltd is the leading India based gaming company. The company has offers products across interactive gaming, esports and gamified early learning ecosystems. Some of its famous games include CarromClash, World Cricket Championships and Motu Patlu series.

They have also gamified early learning in the game Kiddopia, Nodwin and Sportskeeda in eSports and eSports media, and Halaplay and Qunami in skill-based, fantasy and trivia games. Although a market leader in India the company also enjoys a good presence in Africa, South East Asia, Middle East, and Latin America.

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The company is also backed by investors like Utpal Sheth and Rakesh Jhunjhunwala aka the big bull. He is known to invest in quality companies that offer multifold returns in the long run.

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Earlier this month Nodwin gaming a subsidiary of Nazara where they own a 55% stake, raised Rs 164 crore from the makers of the popular game ‘PlayerUnknown’s Battlegrounds’ (PUBG)- Krafton a South Korean company.

Nazara Technologies total assets over the years | Nazara Technologies IPO Review

NazaraTechnologies have focussed on sustaining the majority of their growth through the funds they generate from their operations. This has helped them maintain positive EBITDA. They have raised Rs 12.63 crore (in two tranches – 2005 and 2007) and Rs 76.53 crore in 2018.

The company has maintained good financials with over Rs 400 crore in cash. They have invested over Rs 300 crore into other Indian gaming companies over the last 5 years.

Nazara Technologies' profit over the years

Unlike most businesses that were severely affected by the COVID-19 restriction, Nazara’s customer base boomed. They received an average of 40.17 million Monthly Active Users (“MAUs”) for Financial Year 2020. For the 9 month period ending in December, the company received an average MAU of 57.54 million.  

Nazara Technologies IPO Review- Key IPO Information

Vikash Mittersain, Nitish Mittersain, and Mitter Infotech LLP are promoters of the company. They will be taking part in the offer for sale by selling  52,94,392 equity shares or a 16.7% stake. They will rake in Rs 582.91 crore at the upper band of the IPO.

Other investors like Mitter Infotech LLP, IIFL Special Opportunities Fund, Good Game Investment Trust, IndexArb Securities and Azimuth Investments will also be selling shares in the IPO. 

Nazara Technologies IPO Review | Promotor Ownership

IIFL will be partially exiting the company. They currently hold over 21% stake and will be selling off a  14% stake in the company. Others will be selling a 2.25% stake out of their total 22.5% holdings. Rakesh Jhunjhunwala, who owns a 10.8% stake, has decided to stay invested in the company.

The promoters have appointed ICICI Securities, Nomura Financial Advisory and Securities (India) Private Limited, Jefferies India Private Limited and IIFL Securities as the lead managers to the issue. Link Intime India Private Ltd has been appointed as the registrar to the IPO.

IPO Size₹582.91 Cr
Fresh Issue---
Offer For Sale(OFS)₹582.91 Cr
Opening DateMar 17, 2021
Closing DateMar 19, 2021
Face Value ₹4 per equity share
Price Band₹1100 to ₹1101 per equity share
Lot Size13 Shares
Minimum Lot Size1
Maximum Lot Size13
Listing DateMar 30, 2021

It is also important to note that this the second time that Nazara Technologies has attempted an IPO. They had earlier filed a draft red herring prospectus in 2018 but backed out citing market conditions. 

Purpose of the Nazara Technologies IPO

The company has opted for the IPO for the following two reasons:

  • To achieve the benefits of listing Equity Shares on the Stock Exchanges. 
  • To carry out Offer for Sale.

Closing Thoughts

The Nazara Technologies Ltd IPO opens on 17th March and closes on 19th Mar 2021. Before investing prospective investors must carefully consider both the future prospects and the risks associated with the company.

That’s all for this post. Do let us know what you think of Nazara Technologies Ltd IPO Review. Are you planning to apply for this IPO or not? Comment below. Cheers!

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