March 17, 2021 1:53:15 pm
Nazara Technologies IPO: The Rs 583 crore initial public offering (IPO) of Nazara Technologies opened for subscription earlier in the day and will be available for subscription till Friday, March 19, 2021.
The Mumbai-based gaming firm which is backed by ace investor Rakesh Jhunjhunwala is known for its popular games on World Cricket Championship, Chhota Bheem and Motu Patlu series.
Nazara Technologies IPO comes with a price band of Rs 1,100-1,101 per share and the shares will be listed on both BSE and National Stock Exchange (NSE).
Ahead of its IPO, Nazara Technologies on Tuesday raised a little over Rs 261 crore (Rs 2,61,31,07,895) from 43 anchor investors, data from the stock exchanges showed.
The anchor investors include the likes of Government of Singapore, Abu Dhabi Investment Authority and Goldman Sachs India among others.
The IPO will see an offer for sale (OFS) of 52,94,392 equity shares by the promoters and existing shareholders. Those selling shares in the Nazara Technologies IPO include Mitter Infotech LLP, a promoter of the company, IIFL Special Opportunities Fund, Good Game Investment Trust, Good Game Investment Trust and a few others.
Investors who wish to subscribe to Nazara Technologies IPO can bid in the lot of 13 equity shares and multiples thereof. At the upper price band, they will have to shell out Rs 14,313 to get a single lot of Nazara Tech.
The IPO includes a reservation aggregating up to Rs 2 crore for purchase by the company’s employees.
Nazara has undertaken investments and acquisitions in various gaming categories, including e-sports, 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.
ICICI Securities, IIFL Securities, Jefferies India and Nomura Financial Advisory and Securities (India) are the book running lead managers to the IPO while Link Intime India is the registrar of the issue.
The research teams at Motilal Oswal Financial Services and Geojit Financial Services in their respective IPO notes have recommended “Subscribe” to the offer.
Geojit Research in its IPO note said, “At the upper price band of Rs.1,101, NTL is available at EV/Sales of 8.5x based
on H1FY21 (annualized numbers) which is on the higher side. But this premium valuation is supported by the high scalability of new digital business. The company will also enjoy limited competition from domestic players and strong backing from a fast-growing Indian gaming market, we assign a “Subscribe” rating for the issue on a short to medium-term basis.”
Motilal Oswal in their IPO note stated, “We like Nazara given its leadership in highly underpenetrated mobile gaming, wide product portfolio and strong relationship and network. Nazara is expected to witness strong growth for next 2-3 years given its recent acquisitions and first mover advantage. The issue is valued at 5.5x FY21 P/BV and 7.6x FY21 EV/Sales on an annualized and post issue basis. The issue is first of its kind listing and has no peer comparison in India. We believe that the market would like to give premium valuation to emerging growth stories like mobile gaming. We recommend Subscribe.”
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