Nazara Technologies first online gaming company to file IPO

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Nazara Technologies Limited will become the first mobile gaming company to file an IPO. Company’s first public issue will have more than 55 lakh equity share for sale.

Nazara, in its bid to enter the stock market, has filed a draft red herring prospectus with capital markets regulator Securities and Exchange Board of India. This is the first step towards getting listed on both the major stock exchanges, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Nazara’s public issue will see the sale of 5,543,052 equity shares by two existing shareholders- investor WestBridge Ventures Investment Holdings will sell around 19.21% stake in the company while promoter company Mitter Infotech will sell around 1.33% equity, PTI has reported quoting DRHP.

The IPO, resulting in 20.54% stake dilution, is seeking a valuation of around $500 million.

The listing of equity shares will enhance company’s brand name and provide liquidity to the existing shareholders. “The listing will also provide a public market for equity shares in India,” the company has stated.

According to a VC Circle report, Nazara Technologies’ total revenues for the sixth month period ending 30th September 2017 was ₹83.89 crore, with a net profit of approximately ₹19.84 crore. ICICI Securities and Edelweiss Financial Services are merchant bankers managing the IPO, while law firm Cyril Amarchand Mangaldas is the legal counsel representing the company and WestBridge Capital. AZB & Partners is the legal advisor to the merchant bankers on the IPO.

Notable investors in the company include WestBridge Ventures, Rakesh Jhunjhunwala, and IIFL Special Opportunities Fund.

The company runs popular subscription-based games like Chhota Bheem, Star Cricket, Bike Racing, Motor Racing etc. across Africa, Middle East, South East Asia, Latin America and the Indian subcontinent. The company has also invested an undisclosed amount in real-money fantasy sports provider Hala Play.

Nazara has also invested in game developers like Next Wave Multimedia, NODWIN Gaming, and Moonfrog Technologies as well as in London-based virtual betting company Mastermind Sports.