Jhunjhunwala-Backed Tech Startup Unveils IPO Plan, Inventory Doubles In 6 Months

Rakesh Jhunjhunwala-backed Nazara Technologies is planning to hit the primary market soon. The Mumbai-based mobile gaming company informed its shareholders about its IPO plan in a letter earlier this month.

“This is to intimate you that the board of directors of Nazara Technologies, at its meeting held on September 16, 2020 approved the proposal to undertake an initial public offering of the equity shares of Rs 4 each of the company through the book building process and list the shares on one or more recognised stock exchanges in India,” says the letter. ETMarkets.com has seen a copy of the same.

The issue may comprise fresh shares and offer for sale of equity shares from existing shareholders. The company will soon file the draft red herring prospectus (DRHP) with markets regulator Sebi.

The issue size is yet to be decided, but some traders estimate the IPO price around Rs 950. When contacted, Nazara Technologies declined to comment.

Nazara has a diversified business model comprising subscription business, Freemium business and Esports business across emerging markets such as India, West Asia, Africa, Southeast Asia and Latin America.

Shares of Nazara Technologies have almost doubled in last six months in the unlisted market. The unlisted shares traded at around Rs 750-800 this week against their April price of Rs 400-450.

Besides Jhunjhunwala, Westbridge Ventures, Turtle Entertainment, IIFL Special Opportunity Fund and Emerging Investments are other key shareholders of the company.

Sandip Ginodia of Abhishek Securities said it is the first domestic gaming company eyeing a listing on the bourses. “Strong promoters and a unique business model are going to be key strengths of the issue,” he said.

Ginodia said leisure mobile gaming saw a lot of traction during the lockdown, as people had nothing much to do. It is among those segments of the media and entertainment sector, which has seen rapid growth due to the pandemic.

The company’s flagship mobile games include 'World Cricket Championship 2', 'Chhota Bheem Race' and 'Motu Patlu Game'. Its subsidiary Nodwin Gaming hosts multiple gaming events across the country.

The company’s consolidated revenue for financial year 2019 stood at Rs 183 crore, on which it generated a Rs 4.2 crore PAT. For the year 2018, these figures stood at Rs 180 crore and Rs 1.2 crore, respectively.

Dinesh Gupta, Co-founder of UnlistedZone, a Delhi-based firm that deals in unlisted shares, said the gaming technology company has no peer in the listed or unlisted space.

“The technology space is rocking in this market. However, some of the recent IPOs have not seen great success,” he said, adding that the company earlier did a private placement at Rs 728 per share in July 2019 and as such the IPO price is likely to be around Rs 950.”

Sandip Ginodia , CEO

ALTIUS INVESTECH PVT LTD

We deal in over 60 unlisted companies with 15 years of experience

For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

Email : ginodiasandip1@gmail.com

Reliance's JioMart is averaging half a million orders per day; WhatsApp driving growth

JioMart , Reliance's online-to-offline commerce platform that launched in May , has scaled up rapidly, riding on the pandemic-fuelled digital acceleration. The service, which went live in 200 cities across India, is currently processing an average of 500,000 orders per day. " We can go even higher on peak days", Jio Platforms CEO Kiran Thomas revealed at the Facebook for Fuel India 2020 event. He said, "JioMart is empowering millions of kiranas and small merchants through the simple and secure platform of WhatsApp, and linking them to Reliance Retail's pan-India supply chain. We expect to grow manifold in future, and are optimistic about enabling new cohorts of users and making it easier for them to shop for daily essentials." "Customers are transacting seamlessly on JioMart and the conversational nature of the service enabled by WhatsApp has made people adapt to it intuitively," he added. Reliance also stated that it will continue t

Stock broker SMC Global files for IPO

F inancial services company SMC Global Securities has filed draft red herring prospectus with SEBI for public issue of 1,58,67,380 equity shares of face value of Rs 2 each. The issue comprises a fresh issue of 79,33,690 equity shares by the company and an offer for sale of 79,33,690 shares by Millennium India Acquisition Company Inc. As of September 30, 2012, "We service our broking clients through a network of 43 branches and 2,521 registered sub-brokers and authorized persons spread in more than 500 cities and towns. We have also established an office in Dubai for brokerage and trading activities in that region," the company said. SMC has reported a loss of Rs 0.42 crore and total revenues of Rs 292.24 crore in the year ended March 31, 2012. "The proceeds of the fresh issue shall be utilised for margin maintenance with stock exchanges; part repayment of term loan; investments into subsidiary, SMC Comtrade; and general corporate purposes," according to p

TCS merger with TCS e serve

The board of Tata Consultancy Services (TCS) in its meeting on 18 October 2012 has approved the composite scheme of arrangement between TCS, TCS e-Serve (e-Serve) and TCS e-Serve International (TEIL). The composite scheme of arrangement provides for merger of e-Serve into TCS and demerger of TEIL's special economic zone (SEZ) undertaking(s) to TCS. The appointed date proposed for this scheme is 01 April 2013. TCS holds 96.26% of the paid up equity share capital of e-Serve. TEIL is a wholly owned subsidiary of e-Serve. As per the terms of the scheme of arrangement, shareholders of e-Serve (other than TCS) will receive 13 equity shares of Re 1 each of TCS for every 4 equity shares of Rs 10 each of e-Serve held by them. The board has approved the scheme of merger of Computational Research Laboratories (CRL) and Retail FullServe (RFL) with TCS. The proposed appointed date for the merger of CRL is 01 October 2012 and for the merger of RFL is 01 April 2012. Computational Res

Abhishek Securities

Search This Blog