Nazara Technologies to launch Rs 1000 Cr IPO, first public listing in gaming space

Nazara Technologies, a leading mobile game publishing company, is planning to launch Rs 1,000-crore IPO by the end of financial year. The company has roped in ICICI Securities and Edelweiss Financial Services for the IPO launch, which could be the first public listing in the gaming space, according to an ET report.

“The company is planning to finish the listing process by end of March 2018, and is expecting a valuation of 30-35 times projected profit after tax (PAT) of Rs 100 crore in FY19,“ said one of the sources talking to ET.

Founded in 2000 by Nitish Mittersain, the Mumbai-based gaming company expects the valuation to be around Rs 3,000-3,500 crore.

The private equity firm WestBridge Capital which has invested a total of $3 million in two tranches in 2005 and 2007, and currently owns around 55 per cent stake, is expected to give a whopping 75-80 times return.

Nazara, popularly known for its Chhota Bheem game, had gross customer billings of over Rs 550 crore with PAT (profit after tax) of Rs 66 crore, according to the company report. It has been profitable since 2007.

Over the last decade, Nazara has also expanded globally to 74 countries as publisher thus diversifying its revenues across Africa and Middle East as well.

The company is now looking to its focus from casual mobile gaming to other platforms and become a broader ecosystem player in the space.

In February this year, Nazara Games had committed to investing Rs 136 crore in its eSports venture over the next five years. 

It is also looking to actively pick up stakes in gaming startups, like last month it invested in game development studio Moong Labs, which it had partnered with to launch a 4D cricket game featuring Virat Kohli.