Nazara Technologies IPO
The IPO of gaming and sports media platform Nazara Technologies was eagerly awaited by all the investors and now this wait is coming to an end. Its IPO will open on March 17 next week. Nazara Technologies, owned by Rakesh Jhnunjhunwala, has set a target of raising Rs 582.91 crore through a public issue. However, no new shares will be issued but funds will be raised by the existing shareholders through the Offer for Sale (OFS). Mitter will reduce its stake through Infotech LLP IPO. However, veteran investor Rakesh Jhunjhunwala will not reduce his stake. He has a 10.82 percent stake. The IPO will be open for subscription from 17 March – 19 March.
The shareholders, including the promoters, who are reducing their stake, currently hold a 41.51 percent stake in the company with 1.26 crore equity shares. Out of this, 52.94 lakh shares will be sold through IPO. Talking about the gray market, the shares of Nazara Technologies are at a premium price of Rs 620.
13 shares lot size
Nazara Technologies has placed a lot size of 13 equity shares for the IPO, meaning that bids will be placed for at least 13 equity shares. The price band for the IPO has been kept at Rs 1100-1101 per equity share with a face value of Rs 4. Investors will have to invest at least Rs 14,313 based on the upper price band. A part of the issue will be reserved for eligible personnel, who will get a discount of Rs 110 per equity share. 75% of the issue is reserved for qualified institutional buyers (QIB) and 15% for non-institutional investors. Only 10 percent of the issue will be available to retail investors.
Trading at a premium of Rs 620 in the gray market
Outside the market, shares of Nazar Technologies are trading at a strong price in the unlisted space. At the beginning of February, the unlisted space was trading at a price of Rs 1060 per share, while price details were not even announced. Now speaking of the gray market, according to Manan Doshi, co-founder of Unlisted Rayna, Nazara Technologies is at a premium price of Rs 620 per share. Nazara Technologies had a profit of Rs 1 crore in FY 2018 and 6.7 crores in FY 2019. However, in the last financial year 2020, it incurred a loss of Rs 26 crore.
Nazara Technologies is in the education technology space, eSports, gaming, fantasy sports, and sports content creation. Apart from this, Nazara runs Kiddopedia. According to Elara Capital, Kiddopidio has great potential to increase paid US subscribers and is expected to increase its revenue by 30% in the gaming range from advertisements.
