Nazara Technologies Ltd. will sell shares at Rs 1,100-1,101 apiece in its initial public offering that commences on March 17, the first by an Indian gaming and diversified sports platform.
Nazara aims to cater to billion plus mobile internet players across emerging markets, for whom social multiplayer interactive gaming is a key form of entertainment. The company seeks to achieve this through interactive mobile games, e-sports content and gamified early learning apps.
The company’s monthly active user base stood at 4 crore on average in FY20, which rose to 5.75 crore for the nine-months through Dec. 31, 2020.
Risks
Internal risk factors highlighted by the company.
Nazara Technologies reported a restated loss in FY20 and for the six-month period ended Sept. 30, 2020, and may incur additional losses in the future.
One of its group companies incurred losses in the last three fiscals.
The company has had negative cash flows in the past, which may recur in the future.
It may be unable to effectively monetise its e-sports offerings, materially and adversely affecting business, financial condition and cash flows.
Financials And Valuations
The company’s revenue rose in FY21, as millions stayed home and took to internet-based entertainment amid pandemic-induced lockdowns.
Key Business Strategies
Continue to build on leading market position and growth opportunity in India.
Continue global expansion leveraging the existing distribution network.
Enhance existing offerings and increase monetisation opportunities.
Launch new IP and titles across content and games.
Pursue strategic investment and acquisition opportunities.
* Data also sourced from Axis Capital reports.
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