Rakesh Jhunjhunwala-backed gaming firm Nazara Technologies files IPO papers with Sebi

Gaming firm Nazara Technologies has filed preliminary papers with capital markets regulator Sebi to float an initial public offering.
The company, backed by ace investor Rakesh Jhunjhunwala, is popularly known for its games on World Cricket Championship, Chhota Bheem and Motu Patlu series.

Nazara's public issue will see a sale of 49,65,476 equity shares by the promoters and existing shareholders, according to draft red herring prospectus (DRHP) filed on Thursday.


Those selling shares in the IPO include Mitter Infotech LLP - a promoter of the company, IIFL Special Opportunities Fund, Good Game Investment Trust, IndexArb Securities and Azimuth Investments.

Nazara Technologies was founded in 1999 by Nitish Mittersain, who is the Joint Managing Director of the firm.

The company said that listing of equity shares will enhance its brand name and provide liquidity to the existing shareholders.

The listing will also provide a public market for equity shares in India, the company added.

ICICI Securities, Nomura Financial Advisory and Securities (India) Private Limited, Jefferies India Private Limited and IIFL Securities are book running lead managers to the issue.

The equity shares are proposed to be listed on BSE and NSE.

It had earlier filed preliminary papers with Sebi in February 2018 and had received approval to float the IPO, but the firm did not launch the issue.

Earlier this month, WestBridge Ventures II Investment Holdings -- a fund managed by WestBridge Capital -- exited from Nazara by selling shares worth over Rs 500 crore to Plutus Wealth Management LLP and its associates.

Apart from the latest transaction, WestBridge had sold shares to IIFL Special Opportunities Fund and Rakesh Jhunjhunwala, for Rs 327 crore and Rs 182 crore, respectively, in Nazara during 2017.

The company has undertaken investments and acquisitions in various gaming categories, including esports, edutainment, infotainment, fantasy sports, multiplayer games like carrom and mobile cricket games, among others to strengthen its position in the gaming and sports media space.

Nazara owns IPs, including WCC and CarromClash in mobile games, Kiddopia in gamified early learning, NODWIN and Sportskeeda in esports and esports media, and Halaplay and Qunami in skill-based, fantasy and trivia games.