About the Company: Nazara Technologies Ltd 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.
Offerings across the interactive gaming, eSports and gamified early learning ecosystems including World Cricket Championship (WCC) and CarromClash in mobile games, Kiddopia in gamified early learning, Nodwin and Sportskeeda in eSports and eSports media, and Halaplay and Qunami in skill-based, fantasy and trivia games.
Company’s goal is to cater to billion plus mobile internet players across emerging markets who have embraced social multiplayer interactive gaming as the foremost form of entertainment.
As of December 31, 2020, Company’s user base across offerings spanned 58 countries. Company’s diversified offerings, leadership in eSports and sports simulation and geographical reach across India, Middle East, Africa and North America, provide a strong foundation on which we are able to scale new products.
Indian Mobile gaming market:
Growth in the Indian mobile gaming market will be predominantly characterized by the rising adoption of smartphones, drop in data prices, increased internet penetration, high internet speeds etc.
The mobile gaming market in India is the largest gaming segment and was pegged at USD 0.3 billion in 2016. Being the largest gaming segment in India, this is the fastest growing sector as compared to PC and Console gaming.
This segment is valued at USD 1.2 billion in 2020 and is expected to reach a value of USD 3.1 billion by 2023, growing at a healthy CAGR of 39.6% during this period.
Company’s expansion into global markets.
Company’s expansion into global markets has been strategic, both in terms of geographies as well as timing for entering new markets. Company has built capacities and capabilities across our offerings in India, targeting gamers within the country, and then replicated our business model in global markets to target gamers.
Company’s content is developed in India for the Indian as well as global audience, allowing us to achieve scale, as evidenced by an average of 40.17 million MAUs for Financial Year 2020 and an average of 57.54 million MAUs across all games for the nine month period ended December 31, 2020.
Revenue from Business Segments:
Gamified early learning (Kiddopia):
Company entered the gamified early learning segment in North America through Kiddopia, Company’s flagship gamified early learning app, which we acquired in Financial Year 2020. Through Kiddopia, company primarily caters to children aged between two and six years.
Company delivers an immersive learning experience through gamification, leveraging our expertise of creating engaging game designs and marrying it to the education needs of early learners.
The subscriber base of the app, which comprised of 115,220 paying subscribers at the time of acquisition of Paper Boat App by us in Financial Year 2020, has grown to 316,428 paying subscribers as of December 2020.
In a short span of time, Kiddopia has transitioned into a trusted and well recognized brand for game-based learning, and has received multiple awards and recognitions.
Kiddopia was ranked 3rd on the US Apple App Store on December 5, 2020, with an average rating of 4.4 out of 5 stars since its release.
Company offers monthly and annual subscription plans for Kiddopia, currently priced at USD 6.99 per month and USD 59.99 per year.
Investments by Nazara Technologies in synergistic companies:
Company’s recent acquisitions include marquee entities such as Halaplay Technologies, Absolute Sports, Khichadi and TopQuiz, significantly augmenting company’s presence in skill-based and trivia gaming, and Paper Boat, facilitating company’s entry into the gamified early learning business.
Revenue from Various Geographies:
Top Shareholders:
Management Team:
- Mr. Vikash Mittersain (Designation: Chairman and Managing Director)
- Mr. Nitish Mittersain (Designation: Joint Managing Director)
- Mr. Kuldeep Jain (Designation: Non-Executive Director)
Peer Group Comparison:
There are no listed entities similar to Nazara Technologies line of business and comparable to their scale of operations. Hence we cannot make any Comparison.
Positives for the Company:
- Leadership position in a diversified and scalable business.
- Portfolio of premium intellectual property and content across regions and businesses.
- Large and engaged community of users, with attractive monetization opportunities.
- Successful inorganic growth through strategic acquisitions.
- Profitable platform model benefitting from India growth story with limited regulatory risk.
- To Continue global expansion leveraging the existing distribution network.
Financials of the Company: (Consolidated)
| (in Crores) | FY 16 | FY 17 | FY 18 | FY 19 | FY 20 | 30th Sept 20 |
|---|---|---|---|---|---|---|
| Revenue | 219.0 | 198.9 | 181.9 | 186.0 | 262.1 | 207.0 |
| Net Profit | 64.52 | 59.72 | 1.0 | 6.7 | (-26.6) | (-10.1) |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 17th March 2021 |
| Issue Closes on:. | 19th March 2021 |
| Issue Price | Rs.1100 – 1101 |
| Retail Portion | 10% |
| Face Value | Rs.4 |
| Minimum Lot | 13 shares |
| Minimum Investment | Rs.14,313 |
| Issue Constitutes | 17.38% |
| Issue Size | Rs. 582.91 cr ($78 million) |
| Market Cap | Rs. 3352 cr ($453 million) |
| Listing at | NSE & BSE |
| Total Equity Shares Offered (OFS) | 52,94,392 |
| Equity Shares Prior to the Issue | 3,04,52,836 |
| Equity Shares after the Issue | 3,04,52,836 |
Also Read: How to know whether IPO is a Good IPO or a bad IPO?
Important Dates:
| Finalization of Basis of Allotment | On or Before 24th March 2021 |
| Initiation of Refunds | On or Before 25th March 2021 |
| Credit of Equity Shares: | On or Before 26th March 2021 |
| Listing Date: | On or Before 30th March 2021 |
Subscription Details: (Will be updated)
| (Subscription-Category-Wise (no. of times) Till time : 05:00 PM) | Shares Offered | 17th March | 18th March | 19th March |
|---|---|---|---|---|
| QIB | 15,82,264 | 0.36 | 0.72 | 103.77 |
| NII | 7,91,131 | 2.86 | 7.73 | 389.89 |
| Retail | 5,27,421 | 16.74 | 44.47 | 75.29 |
| Employee | 20,181 | 2.28 | 5.33 | 7.55 |
| TOTAL | 29,20,997 | 4.02 | 10.55 | 175.46 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| (-0.77) | NA | (-0.46%) | 165.54 |
Also Read: Questions to Ask Before You Buy a Stock?
| Check IPO Allotment Status: |
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Link InTime Website (Click on the below Link)https://linkintime.co.in/PublicIssue/ |
| Company Contact Info: |
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| Nazara Technologies Limited 51-57, Maker Chambers 3 Nariman Point, Mumbai 400 021 Maharashtra, India Tel: +91 22 4033 0800 Fax: +91 22 2281 0606 E-mail: rakesh.shah@nazara.com Website: www.nazara.com |
| IPO Registrar Info: |
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| Link Intime India Private Limited C-101, 1st Floor, 247 Park Lal Bahadur Shastri Marg Vikhroli (West) Mumbai 400 083 Maharashtra, India Tel: +91 22 4918 6200 E-mail: nazara.ipo@linkintime.co.in Website: www.linkintime.co.in |
