Incorporated in 1999, Nazara Technologies Ltd is a leading mobile game company in India. The company offers a range of diversified gaming products across the Interactive gaming, eSports, and gamified early learning ecosystem across emerging markets i.e. India, Africa, South East Asia, Middle East, and Latin America.
It is one of the leading live eSports streaming and on-demand eSports media content providers in India. Carrom Clash and World Cricket Championships in mobile games, Kiddopia in gamified early learning, Nodwin and Sportskeeda in eSports, and Halaplay and Qunami are some of its offerings.
The business operates in different segments; Subscription-based business, Freemium Business, eSports, Gamified early learning, and Real money gaming. Subscription business focuses on mass mobile internet users comprising mainly first-time mobile gamers.
The company derives maximum revenue from subscription fees charged from customers under the gamified early learning and eSports business segments.
Product Portfolio:
The company’s Product Portfolio comprises of three businesses:
- Subscription
- Freemium
Strength of the Company
- One of the leading eSports companies in India.
- Diversified business based on the geographical presence and gaming products.
- Strong leadership backed by marquee investors.
- Asset light business model.
Risks Relating to Business:
- The company is dependent on third parties for the distribution of their mobile games and billing pipeline.
- The company may be unable to cater to evolving consumer preferences in the mobile games industry.
- The company is subjected to the risks and uncertainties of conducting business outside India.
- A company’s inability to license intellectual property may adversely impact the growth of their Freemium Business.
IPO Details:
IPO Date March 17th, 2021 to March 19th, 2021 Issue Type Book Built Issue IPO Issue Size5,543,052 Eq Shares of Rs.4(aggregating up to Rs. 582.29 Cr)Fresh Issue NIL Offer for Sale5,543,052 Eq Shares of Rs. 4(aggregating up to Rs. 582.29 Cr)Face ValueRs.4 per equity share IPO PriceRs.1100 to Rs.1101 equity share Min Order Quantity13Listing At BSE, NSE
IPO Objective:
The company purposes to utilize funds towards the following objectives:
- To achieve the benefits of listing Equity Shares on the Stock Exchange.
- To carry out the sale of up to 5,543,052 Equity Shares by the Selling Shareholders
Financial Performance:
ParticularsFY18FY19FY201HFY21Total Assets470.76514.58776.83798.66Revenue172.00169.70247.50200.50Ebitda48.7016.30-5.506.10Ebitda margin (%)28.309.60-2.203.00Net profit2.7017.50-2.10-5.00Net profit margin: (%)1.5710.31-0.85-2.49
Tentative Time Table:
IPO Opens on :17 March 2021
IPO Closes on: 19 March 2021
Basis of Allotment Date: Mar 24, 2021
Initiation of Refunds: 24Mar, 2021
Credit of Shares to Demat Account: 25Mar, 2021
IPO Listing Date: 30 Mar 26, 2021
Outlook:
The digital gaming market worldwide has seen a paradigm shift in adoption and distribution as well as user behavior. The global games market generated revenue of $104.8 billion in 2016, up by 12.6% from 2015. Revenues will have potentially increased to $116.0 billion in 2017 and will continue to increase to $151.7 billion in 2021. Growth is expected to be driven from South-East Asia, the Middle East and India.
Eyeing the growth of the online gaming industry, the interaction with Smartphones and laptops of the youth and cheaper data prices, it is expected that the gaming industry is expected to reach new highs. Digital adverting is also expected to increase, which will help the tech gaming companies to do much better.
Gaming as a whole is a very big industry worldwide where Nazara Technologies is a leading India-based diversified gaming and sports media platform which has a strong brand name too.
Over the period of FY18-20, the revenues of the company have grown at a CAGR of 12.90% while net profit was on declining mode this was due to the new acquisitions made by the company. In FY19-20, Nazara Tech revenue has grown by 45% and it touched the revenue of 247 Crore. The margins of the company are expected to zoom from the current levels.
Nazara Technologies may even trade at a higher multiple as it is a pure-play in the digital world and which has the potential of more than 30% CAGR growth. Its expansion into freemium and e-sports business will surely help the company to do better in the near future.
.webp)
.png)
.png)
