Nazara Technologies IPO Subscription opens today; Investors lap up the opportunity

Nazara Technologies IPO subscribed over 2 times. The public issue subscribed over 7.5 times in the retail category till 1.15 pm. Retail Investors are lapping on the opportunity to invest in Rakesh Jhunjhunwala backed company. The Big Bull holds 11% stake in the company and he is bullish on the future of the company. 

Nazara Technologies IPO is an offer for sale (OFS) of equity shares up to 52,94,392 equity shares with a face value of Rs 4 per share, aggregating to Rs. 582 - Rs.583 cr (at the lower and upper price band). The company has reserved shares aggregating up to Rs 2 cr for eligible employees, which would get a discount of up to Rs 110 per share. The offer includes an OFS of up to 6,91,900 equity shares by the Promoters, 43,87,863 equity shares by the investor selling shareholders, and 2,14,629 equity shares by the other selling shareholders.

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The company has fixed the price band of Rs 1100 - Rs 1101 per share. Since this is an OFS, Nazara will not receive any proceeds from the Offer and all such proceeds (net) will go to selling shareholders. Nazara Technologies is a leading, India based, diversified gaming and sports media platform with presence in India and across emerging and developed global markets such as Africa and North America.

Nazara is well diversified with some of the most recognizable IPs under its kitty, viz., Kiddopia in gamified early learning (39% of revenue), Nodwin & Sportskeeda in eSports (32%), WCC & CarromClash in simulation games (5%), and Halaplay Technologies in real money games (3%), while Telco Subscription forms 21% of revenue. It enjoys leadership in eSports with 80% market share and cricket simulation games where WCC is India’s most awarded mobile game. It’s capabilities of in-house content creation, game engine development, technology stack development and relationships with other participants in gaming, would help in further penetration and increase monetization.