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NAZARA READY WITH ITS IPO

The leading gaming and sports media platform of India; Nazara Technologies is ready to launch its IPO next week. The target is to raise a amount of Rs. 582.91 crore in this issue.

 

WHAT’S IN THE IPO?

It is not a fresh issue to public. The IPO clearly is an offer of sale to given to the existing shareholders of the company. The other important details to be kept in mind in respect of issue are:

  • Investors will be provided the opportunity to bid for the issue starting from March 17 and will be closing on March 19.
  • The price band would be Rs. Rs. 1100 to Rs. 1101 per share that carries a face value of Rs.4.
  • The minimum limit of shares that an investor can bid will be 13 shares; which is that a minimum amount to be invested would stand at Rs. 14.313 and then the multiples can be looked forward.
  • A specific part of issue will be reserved for the employees of the company; who will be getting a discount on par value.
  • The reserved ratios are as mentioned:

75% – Qualified Institutional Buyers (QIB)

15%-   Non-Institutional Investors

10%-    Retail Investors

NAZARA’s INSIGHT

The company was set up way back in 1999 and is now counted upon a leading platform offering diversified range of gaming products and ecosystems. The most popular games being offered by the venture are Motu Patlu , Carrom Clash, Kiddopia, Sportskeeda, Chota Bheem and World Cricket Championship.

The company has a diversified global space in different emerging and established markets in Africa, Middle East, Asia & North America. The major investees are Mastermind Sports Limited, Moonglabs and Hashcube. The rich subsidiary portfolio also consists of ventures like Paper Boat Apps, Nodwin Gaming, Absolute Sports, Next wave, Sports Unity and Halaplay.

 

MARKET EXPECTATIONS

The Nazara technologies shares gained quite a strong response in the unlisted market. In the last month; they reached a price of Rs.1060 per share.

How can a market expectation be analyzed without looking at grey market?

Grey market is a kind of unofficial market where the trading still takes place in the over the counter format. This is a total unregulated market that has no relations with SEBI. The Nazara shares are trading at premium of Rs. 620 in the grey market.

The expected growth is to be around 30% as the main focus of the venture on the digital ad industry. The profit figures of the company in 2019 present a profit of Rs 6.7 crore while the last year has been a little tough as it reported a loss of Rs. 26 crore.

The selling shareholder’s list comprises of some promoters that collectively own 41.51% stake in the company who hold close to 1.26 crore equity shares. The expected sell off in next week. However a prominent investor Rajesh Jhunjhunwala who has backed up the venture quite consistently will not sell the 10.82% stake.

 

NAZARA TECHNOLOGIES is a promising sports media venture and has undoubtedly fulfilled all of them by giving a huge list of offerings in the diversified domains. To continue this for the coming times; this IPO is surely the much-needed move.

 

 

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