Big bull Rakesh Jhunjhunwala-backed Nazara Technologies to launch three-day initial public offering (IPO) on March 17. The online gaming company has fixed the issue price at Rs 1,100-1,101 apiece. At the upper end of price band, the issue will fetch nearly Rs 583 crore to the company. The offer will close on March 19.
Rakesh Jhunjhunwala owned 11.51 per cent shares in Nazara Technologies at the end of September quarter of 2020. This is second attempt by the company to list its shares on the bourses. It had earlier filed preliminary papers with Sebi in February 2018 and had received approval to float the IPO, but the firm did not launch the issue.
The company, popularly known for its games on World Cricket Championship, Chhota Bheem and Motu Patlu series, will see a sale of 49,65,476 equity shares by the promoters and existing shareholders, according to draft red herring prospectus (DRHP) filed with capital markets regulator Sebi. The entities which will be selling shares in the IPO include Mitter Infotech LLP (a promoter of the company), IIFL Special Opportunities Fund, Good Game Investment Trust, IndexArb Securities and Azimuth Investments.
Established in 1999 by Nitish Mittersain, who is the Joint Managing Director of the firm, Nazara Technologies has said that listing of equity shares will enhance its brand name and provide liquidity to the existing shareholders. Besides, it will also provide a public market for equity shares in India. The equity shares are proposed to be listed on BSE and NSE.
ICICI Securities, Nomura Financial Advisory and Securities (India) Private Limited, Jefferies India Private Limited and IIFL Securities are book running lead managers to the issue.
For the financial year 2019-20, Nazara Technologies reported net loss stood at Rs 26.61 crore compared to a profit of Rs 6.71 crore a year ago. Its revenue was at Rs 247.51 crore against Rs 169.70 crore in the same period last year.
Nazara owns IPs, including 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. It has undertaken investments and acquisitions in various gaming categories, including esports, edutainment, infotainment, fantasy sports, multiplayer games like carrom and mobile cricket games, among others to strengthen its position in the gaming and sports media space.