Nazara’s IPO Subscribed 10.55 Times On Day Two

WestBridge Completes Nazara Games Exit As Plutus Acquires INR 500 Cr Stake

SUMMARY

The Nazara issue has received bids for 1.65 Cr equity shares against an offer size of 29.20 lakh equity shares, the subscription data on exchanges showed

On day 1 of the IPO, the issue had been subscribed 3.8 times. The IPO closes for subscription on March 19

The Nazara IPO is entirely an offer-of-sale, with the company planning to raise INR 583 Cr through the public issue

The initial public offering (IPO) of Indian gaming company Nazara Technologies has received a strong response from institutional and retail investors. By 4 pm on Thursday, the second day of the IPO, the issue had been subscribed 10.55 times, with the retail portion being subscribed over 44 times, the QIB (qualified institutional buyer) portion subscribed 0.72 times the base and NII (non-institutional investor) portion subscribed 7.73 times.

The issue has received bids for 1.65 Cr equity shares against an offer size of 29.20 lakh equity shares, the subscription data on exchanges showed. On the first day of the IPO, the issue had been subscribed 3.8 times. The IPO closes for subscription on Friday, March 19.

The Nazara IPO is entirely an offer-of-sale, with the company planning to raise INR 583 Cr through the public issue. The shares will be sold in the price band of INR 1,100-INR 1,101 representing a 16.7% stake in the company. Ahead of its IPO, the company allotted shares worth INR 261 Cr to 43 anchor investors at INR 1,101 per piece. ICICI Securities, IIFL Securities, Jefferies India and Nomura Financial Advisory and Securities (India) are the lead managers for the IPO.

Founded by Vikash Mittersain and Nitish Mittersain in 2000, Nazara is a diversified gaming and sports media platform with a presence in India and global markets such as Africa and North America. The company specialises in interactive gaming, e-sports and gamified early-learning ecosystem, and is well-known for its variety of products, including World Cricket Championship (WCC) and CarromClash (mobile games), Kiddopia (gamified early learning), Nodwin and Sportskeeda (e-sports and esports media, respectively) and Halaplay and Qunami (skill-based fantasy and trivia games).

Nazara had first announced its IPO plans back in 2017, and after 20 years of incorporation, it is finally ready. The wheels have started moving forward and so has the process to provide an exit to WestBridge Capital, which has been on Nazara’s cap table since 2005 when it invested $3 Mn.

Nazara posted revenue of INR 264 Cr in the financial year 2020, growing from INR 164 Cr in FY2019. It aims to clock a revenue of INR 450-470 Cr in FY2021, ending in March. The company intends to do so by expanding its coverage and building up distribution network capacity in emerging markets.

Besides Nazara, Indian online travel aggregator EaseMyTrip also went for an IPO this month. For the over 1.5 Cr shares on offer, the IPO received bids for 240.27 Cr equity shares, the subscription data available on exchanges showed.

Several other Indian startups such as Zomato, Droom, PolicyBazaar, Delhivery and Grofers are also reportedly planning IPOs this year.