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Nazara Technologies IPO Details – Dates, Price & Overview5 min read

March 17, 2021 4 min read

Nazara Technologies IPO Details – Dates, Price & Overview5 min read

Reading Time: 4 minutes

Nazara Technologies is all set to become the first Indian gaming technology company to make its market debut in the IPO format. The Mumbai-based mobile gaming company is going to open its maiden public offer for subscription on March 17. If you’re looking for Nazara Technologies IPO details, here’s everything that you need to know.

Company Overview

Nazara Technologies is the leading India-based diversified gaming and sports media platform with a presence in India and markets such as Africa and North America.

It offers interactive gaming, eSports and gamified early learning ecosystems, including the World Cricket Championship (WCC) and CarromClash in mobile games, Kiddopia in gamified early learning, Nodwin and Sportskeeda in eSports media, and Halaplay and Qunami in skill-based, fantasy and trivia games.

Its 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.

The company seeks 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 its platform.

Given the company’s market-first position in India across sports simulation and eSports, the company believes it is well placed to leverage the opportunity that interactive mobile games, eSports content, and gamified early learning apps offer.

Growth Story

Nazara Technologies’ effort has been to grow revenue and profitability concurrently by leveraging the capabilities of in-house content creation, game engine development, technology stack development, relationships with other participants in gaming ecosystems, and skilled leadership.

The company has expanded into global markets and has been strategic, both in terms of geographies as well as timing for entering new markets. It built capacities and capabilities across offerings in India, targeting gamers within the country, and then replicated the business model in global markets to target gamers.

In addition to a strong portfolio of offerings, its growth is also driven by the strong tailwinds across mobile gaming and eSports across the globe, with a further acceleration seen in the calendar year 2020 on account of COVID-19.

Awards & Recognition

Nazara Technologies received the ‘Users’ Choice Game of 2020’ award for WCC3, in November 2020. WCC2 became the people’s choice winner in gaming in PM Modi’s Atma Nirbhar Bharat App Innovation Challenge.

Overall, WCC apps have garnered more than 140 million installs across devices. Moreover, Kiddopia was ranked 3rd on the US Apple App Store on December 5, 2020, with an average rating of 4.4 out of 5 stars since its release.

Financials

Here is a quick look at the financial performance of Nazara Technologies over the last three years:

IPO Details

Nazara Technologies is coming up with an initial public offering of Rs. 583 crores, and is set to open on March 17 and conclude on March 19, 2021. The company is issuing shares at a price band of Rs. 1,100 to Rs. 1,101 with a minimum lot size of 13 shares and in multiples of 13 thereafter. Nazara Technologies is offering up to 5,294,392 equity shares with a face value of Rs. 4 per share.

The book-running lead managers for the issue are ICICI Securities, IIFL Securities, Jefferies India, and Nomura Financial Advisory and Securities India while the registrar for Nazara Technologies will be Link Intime India Private Limited. The listing will also provide a public market on NSE and BSE for equity shares in India.

IPO Timeline

 

Objective of the Offer

Nazara Technologies IPO aims to raise money to achieve the benefits of listing equity shares on the stock exchanges and also to carry out the sale of up to 5,294,392 equity shares by the selling shareholders. Additionally, Nazara Technologies expects to enhance its company’s brand name and creation of a public market for equity shares in India.

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 Indian growth story with limited regulatory risk.
  • Strong leadership team backed by marquee investors.

Risks Involved

  • The company with global operations and subject to risks and uncertainties of conducting business outside India.
  • Failure to compete in markets the company operates effectively.
  • Inability to protect IP or any IP infringement claims will impact the business.
  • Failure to anticipate or successfully adopt and incorporate new technologies.
  • Inability to cater to evolving customer preferences can be detrimental to business.
  • Dependence on the telco subscription business for a substantial portion of profits.

You can apply for the IPO by using these simple steps

  • Log in to the Paytm Money app and complete your fully digital KYC for the stock, if not done already.
  • Once your details are verified and the Demat account is created, click on the IPO section on the home screen.
  • You will then be able to see a list of past and upcoming IPOs where you can apply for IPOs that are open for applications.
  • Next, you must add details for bidding such as quantity, amount, and so on. Maximum 3 bids are allowed.
  • After that, you have to enter your UPI id so that the funds for your highest bid are blocked. You will receive a mandate for the same on your UPI app.
  • Once you accept the mandate, your application will be successfully submitted.
  • Once the allotment happens, you will be notified about your allotment status.

Conclusion

Nazara Technologies boasts 40.17 million MAUs for the Financial Year of 2020 and an average of 57.54 million MAUs across all games for the nine months ended December 31, 2020.

Its proposed IPO will open for subscription on March 17 and the price band of the IPO has been fixed at Rs 1,100 to Rs 1,101 a share. The initial public offer of 52,94,392 equity shares is scheduled to close on March 19.