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    Rakesh Jhunjhunwala-backed Nazara Technologies IPO opens: Key things to know before investing

    Rakesh Jhunjhunwala-backed Nazara Technologies IPO opens: Key things to know before investing

    Rakesh Jhunjhunwala-backed Nazara Technologies IPO opens: Key things to know before investing
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    By Ankit Gohel   IST (Updated)

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    The initial public offering (IPO) of ace investor Rakesh Jhunjhunwala-backed Nazara Technologies opened for subscription on March 17. The company aims to raise Rs 583 crore through its public offer.

    The initial public offering (IPO) of ace investor Rakesh Jhunjhunwala-backed Nazara Technologies opened for subscription on March 17. The company aims to raise Rs 583 crore through its public offer.
    Nazara Technologies, on March 16, already raised Rs 262 crore from anchor investors. This will be the 14th public issue this year.
    The company is the leading India-based diversified gaming and sports media platform with a presence in India and across emerging and developed global markets such as Africa and North America.
    ICICI Securities, IIFL Securities, Jefferies India and Nomura Financial Advisory and Securities (India) are the book-running lead managers to the offer.
    Here are the key things to know about the issue and the company:
    About the IPO
    • The public offer opens for bidding on March 17 and will close on March 19, 2021.
    • The company has fixed the price band for the issue at Rs 1,100-1,101 per equity share.
    • The offer includes an offer for sale of up to 691,900 equity shares by the promoters, 4,387,863 equity shares by the investor selling shareholders and 214,629 equity shares by the other selling shareholders.
    • The company has reserved shares worth Rs 2 crore for its employees. The eligible employees will get these shares at a discount of 10 percent to the offer price.
    • Investors can put in a minimum bid for 13 equity shares and in multiples of 13 equity shares thereafter. This translates to a minimum application size of Rs 14,313 at the higher price band.
    • Nazara Technologies will not receive any proceeds from the offer and all such proceeds (net) will go to the selling shareholders.
    • About Nazara Technologies
      Nazara Technologies Ltd. is the leading India-based diversified gaming and sports media platform with a presence in India and across emerging and developed global markets such as Africa and North America.
      Its offerings include interactive gaming, eSports and gamified early learning ecosystems including World Cricket Championship (WCC) and CarromClash in mobile games, Kiddopia, Nodwin and Sportskeeda, Halaplay and Qunami.
      The company enjoys a leadership position in a diversified and scalable business. It has a portfolio of premium intellectual property and content across regions and businesses. It has a large and engaged community of users, with attractive monetization opportunities.
      Investment concerns
      The company has global operations, subject to risks and uncertainties of conducting business outside India.
      Its success is tied to the continued use of the internet and smartphones, and the reliability and adequacy of online infrastructure in India and emerging markets and data pricing.
      Financials
      In FY20, Nazara Technologies reported a 45.9 percent revenue growth at Rs 247.51 crore, but posted a net loss of Rs 10.5 crore as compared to a profit of Rs 18 crore in FY19. The company’s profit in FY18 was Rs 2.6 crore.
      In H1FY21, the company reported a loss of Rs 10.11 crore on revenue of Rs 200.46 crore.
      Ace investor Rakesh Jhunjhunwala holds a 10.82 percent stake in the company, Plutus Wealth Management LLP holds 6.57 percent, and IIFL has 19.87 percent shareholding as of March 10, 2021.
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