Nazara Technologies Ltd

Nazara Technologies

About the Company:

Nazara Technologies Ltd is one of the leading mobile games companies headquartered in Mumbai, which is engaged in acquisition of, value addition to and distribution, of mobile games across emerging markets such as India, Middle East, Africa, South East Asia and Latin America.

Company’s operations comprise of Subscription Business, Freemium Business and esports business.

Company’s Subscription services were accessed by 130.43 million monthly visitors from 61 countries across emerging markets, and over 4.08 million paying users subscribed to their subscription services, and downloaded over 37.62 million games.

Company’s in-house monthly active users (MAUs) in September 2017, were 8.66 million as compared to 2.79 million MAUs in September 2016, across their network of games on the Google Play Store and App Store.

Next Wave’s (recently acquired Subsidiary) MAUs in September 2017 were 11.02 million as compared to 5.98 million MAUs in September 2016, across its World Cricket Championship franchise.

Further, Company recently acquired Subsidiary, Nodwin Gaming is a pioneer in esports in India with established relationships with global gaming publishers and platforms including market leaders such as ESL, the biggest esports organizer in the world and Valve Corporation.

Company’s Subscription Business is focussed on mass mobile internet users in the emerging markets, comprising largely of first time mobile gamers.

In light of the low propensity of gamers to pay for online content in many of the markets, Company has tailored its product offerings to deliver maximum value for gamers at affordable price points.

Billing for Subscription Business is channelled through telecom operators (carrier billing), which has eased the payment process for gamers and collection
of revenue by the company.

As on September 30, 2017, Company was offering their Subscription Business services through 113 telecom operators in 61 countries, including but not limited to Airtel, Vodafone and Idea in India; and Etisalat and Ooredo in the Middle East.

 

Popularity of Company’s Games:

Some of their mobile games are very popular on the Google Play Store, such as, ‘World Cricket Championship 2’, ‘Chhota Bheem Race’, and ‘Motu Patlu Game’.

Company’s games have consistently been part of the top three games on the top free charts on the Google Play Store ahead of certain globally established names such as Candy Crush, Subway Surfer and Temple Run.

In nine of the first 10 months of calendar year 2017, nine of Company’s in-house games have been ranked among the top three games by downloads on the top free charts on the Google Play Store.

 

Future for the Gaming Industry:

The Indian games market with an estimated US$0.7 billion in total revenue in Financial Year 2017, is dominated by mobile gaming and is forecast to grow very strongly, reaching US$3.5 billion in 2021, almost entirely driven by growth in mobile gaming revenue.

Further, the rapidly increasing smartphone penetration will boost the number of mobile gamers, driving growth in the overall number of gamers.

In terms of download volume of mobile games from Google Play and Apple’s AppStore, India is already one of the leading countries in the world. A strong revenue growth will therefore almost certainly follow in the coming years.

 

Management Team:

  1. Mr.Vikash Mittersain (Designation: Chairman and Managing Director)
  2. Mr.Nitish Mittersain (Designation: Joint Managing Director)
  3. Mr.Kuldeep Jain (Designation: Non-Executive Director)

 

TOP 5 Shareholders:

Sr.No. Shareholder Name Number of Equity Shares held Percentage of Equity Share Capital %
1. WestBridge Ventures II Investment Holdings 6,121,210 22.69
2. Mitter Infotech LLP 5,955,125 22.08
3. Rakesh Jhunjhunwala 3,294,310 12.21
4. IIFL Special Opportunities Fund 1,723,185 6.39
5. Nitish Mittersain 1,475,335 5.47
Total 1,85,69165 68.84%

 

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:

Diversified business across geographies, telecom operators, gamers and gaming content.

Company operates its Subscription Business through its partnership with over 113 telecom operators in 61 countries, as on September 30, 2017.

Company has long standing relationships with various telecom operators, including but not limited to Airtel, Vodafone and Idea in India and Etisalat and Ooredo in the Middle East for direct carrier billings for subscriptions.

Company has made a strategic decision to offer a catalogue of over 1,000 android games on its subscription service through aggregation from different content aggregators across the globe.

 

Continue Organic Growth of their Subscription Business.

Company intends to continue to be present and expand their presence in the emerging markets, including in new countries by capitalising on their first mover advantage in the emerging markets, and leverage their low cost, asset light model and network of partnerships across the gaming ecosystem.

Further, they intend to expand their partnerships with telecom operators in the existing geographies, such as launch additional services with existing operators and increasing revenue from existing operators through addition of more advertisement networks.

 

Pursue strategic Acquisitions and Partnerships.

Company had recently acquired a mobile gaming company, which has further augmented their cricket mobile game offerings.They have also acquired Nodwin Gaming which has added esports to their network of games.

Further, over the last three Financial Years Company has invested in synergistic companies, such as Hashcube Inc., Mastermind Sports Limited, Moonglabs Technologies Private Limited and HalaPlay Technologies Private Limited which develop popular games, to support their game offerings.

Company intends to create a network of synergistic companies within their existing corporate structure, and continuously find companies which have shown positive results in esports in emerging markets.

 

Financials of the Company: (Consolidated)

(in Crores) FY 13 FY 14 FY 15 FY 16 FY 17 30th Sept 17
Revenue  56.1 90.1   157.7  219.0  198.9  88.7
Net Profit  13.2  28.94  59.1 64.52  59.72  19.84

 

IPO Details:

Details Info
Issue Opens on Will be updated
Issue Closes on:. Will be updated
Issue Price Will be updated
Retail Portion Will be updated
Face Value Will be updated
Minimum Lot Will be updated
Minimum Investment Will be updated
Issue Constitutes 20.55%
Issue Size Will be updated
Market Cap Will be updated
Listing at NSE & BSE
Total Equity Shares Offered (OFS) 55,43,052
Equity Shares Prior to the Issue 2,69,72,619
Equity Shares after the Issue 2,69,72,619

Also Read:  How to know whether IPO is a Good IPO or a bad IPO?

 

Important Dates:

Finalization of Basis of Allotment Will be updated
Initiation of Refunds Will be updated
Credit of Equity Shares: Will be updated
Listing Date: Will be updated

 

Subscription Details: (Will be updated)

(Subscription-Category-Wise (no. of times) Till time : 00:00) Shares Offered Day-1 Day-2 Day-3
QIB
NII
Retail
Employee
TOTAL

 

IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
23.19 Will be updated 27.59% 87.04

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Markets Guruji Opinion:

IPO View Apply For: Expected listing Gain:
Will be updated Will be updated Will be updated

 

Grey Market Premium :

Date IPO Price Band Grey Market premium Kostak Rates
00/10/18 Nazara Technologies Ltd Will be updated Will be updated Will be updated

 

Check IPO Allotment Status:

Link InTime Website (Click on the below Link)

https://linkintime.co.in/PublicIssue/

 

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Company Contact Info:
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:
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