Among half-a-dozen primary market offerings to hit the market this week – the Rakesh Jhunjhunwala backed Nazara Technologies Limited (NTL) fixed a price band of Rs 1,000-1,010 per share for its Rs 582- Rs 583 crore initial public offer that will open for subscription on Wednesday, March 17. The three-day public issue will conclude on Friday, March 19.
Nazara Technologies is a leading India-based diversified gaming and sports media platform with a presence across several emerging and developed global markets. The company is coming out with its maiden IPO with a vanilla secondary offer. It is issuing 5,294,392 equity shares and mulls mobilizing Rs 582.91 cr. The minimum Bid Lot is of 13 shares and in multiples thereof. Post the issue, the implied market cap of the company will be approx. Rs 3350 – Rs 3353 cr.
The IPO constitutes 17.39 percent of the post issue paid-up capital of the company. It has retained shares worth Rs 2 cr. for employee registration and offering them a discount of Rs 110 per share. However, from the residual portion it has made an allocation of IPO quota – 75 percent for Qualified institutional buyers (QIB), 15 percent for High Net-worth Individual’s (HNI) and 10 percent for retail investors.
The book running lead managers for the issue are ICICI Securities, IIF Securities, Jefferies India and Nomura Financial Advisory and Securities, while Link Intime India is the registrar. It will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).
NTL was Incorporated in 1999, and has focused on growing a profitable business, with a focus on self-sustainability rather than relying on external investments. This reflects in their fund-raising history, wherein they have raised Rs 12.63 crore (in two tranches – 2005 and 2007) and Rs 76.53 crore in 2018. As a result, they have been EBITDA positive and managed to generate sufficient cash flows from their operations.