Mobile gaming studio Nazara Technologies has announced plans to offer an IPO towards the end of FY18, making it the first public listing in the Indian gaming space. As per reports, the Mumbai-based company has mandated ICICI Securities and financial services firm Edelweiss for the proposed initial public offering.
According to sources, the public offering is expected to raise a total of $156.5 Mn (INR 1,000 Cr) at a valuation of somewhere between $469.7 Mn-$548 Mn (INR 3,000 Cr-INR 3,500 Cr).
Commenting on the development, a source in the know stated, “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 $ 15.6 Mn (INR 100 Cr) in FY19.”
As part of the public offering, WestBridge Capital will partially exit the venture, clocking in a 75-80x return on its 12-year-old investment in the process. Having invested a total of $3 Mn in Nazara between 2005 and 2007, the UK-headquartered PE firm currently holds majority stake of 55% in the mobile games developer and distributor. The remaining shares are held by Nazara Games founder Nitish Mittersain and his family.
Speaking about Nazara’s decision to take the IPO route, Sandeep Singhal, co-founder and Managing Director at WestBridge Capital, said, “Nazara is a great example of all that can be achieved when a company takes a long-term view. It has a great future given its dominance and the huge market potential of mobile gaming in India. Going public will allow the company to maximise its potential.”
The investment firm has previously backed companies like Dr. Lal Pathlabs, Vini Cosmetics, and Havells.
Nazara Technologies: From Hitting Profitability In 2007 To Generating $86 Mn Revenue In FY17
Established in 2000 while Mittersain was still a college student, Nazara Technologies is a mobile games developer and publisher that provides unique services such as “Games Club.” It also serves as an exclusive distributor for key game developers such as Electronic Arts. Apart from Mumbai, the company has offices in Dubai, London, Africa and Singapore.
The company is known for the Chhota Bheem and Virat Kohli mobile games series. It currently offers gaming subscription services to users across 74 countries in Africa, Middle East, Southeast Asia and the rest of Asia Pacific. Nazara also recently entered the e-sports market and is in the process of setting up cricket leagues in India.
At present, Nazara is working to capture the mobile gaming market in India, Africa, and a few Middle Eastern nations. Talking about the company’s plans for the future, Mittersain told Inc42, “Nazara has invested over 15 years in building a very strong foundation to be a leader in digital entertainment / gaming space in India and we look forward to continuing down this path and emerging as a leader in this category across emerging markets reaching out to the next 2 billion consumers.”
In a segment that witnesses intense competition from a fast-expanding crop of startups, Nazara Technologies has been profitability for nearly a decade. In FY17, the company raked in over…