In its bid to enter the stock market, Nazara has filed a draft red herring prospectus with capital markets regulator Securities and Exchange Board of India.
The company runs popular subscription-based games like Chhota Bheem, Star Cricket, Bike Racing, Motor Racing etc. across Africa, Middle East, South East Asia, Latin America and the Indian subcontinent.
Nazara’s public issue will see the sale of 5,543,052 equity shares by two existing shareholders- investor WestBridge Ventures Investment Holdings will sell around 19.21% stake in the company while promoter company Mitter Infotech will sell around 1.33% equity, it has been reported.
The IPO, resulting in 20.54% stake dilution, is seeking a valuation of around $500 million. This is the first step towards getting listed on both the major stock exchanges, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
The listing of equity shares will enhance Nazara’s brand name and provide liquidity to the existing shareholders. “The listing will also provide a public market for equity shares in India,” the company has stated.
According to a VC Circle report, Nazara Technologies’ total revenues for the sixth month period ending 30th September 2017 was Rs. 83.89 crore with a net profit of approximately Rs, 19.84 crore.
Notable investors in the company include WestBridge Ventures, Rakesh Jhunjhunwala, and IIFL Special Opportunities Fund.