Cyril Amarchand Mangaldas advised Nazara Technologies Limited (Nazara\/Company) and its promoters, Vikash Mittersain, Nitish Mittersain and Mitter Infotech LLP, on its recently concluded Initial Public Offer (IPO). As Indian counsel to the Company, we were responsible for drafting the entire document, including depicting Nazara\u2019s complex business model across various business verticals and the analysis of its financial performance. Nazara\u2019s business covers almost all facets of online mobile-based interactive gaming, eSports and gamified early learning ecosystems.<\/p>\n
The IPO of Nazara Technologies is the first ever listing by an online gaming company in India and was highly successful, witnessing strong demand across all categories of investors. The Capital Markets team of Cyril Amarchand Mangaldas advised Nazara Technologies and its Promoters on the Transaction.<\/p>\n
The Transaction team was led by\u00a0Yash Ashar, Partner & Head \u2013 Capital Markets;\u00a0Gokul Rajan, Partner; and\u00a0Reuben Chacko, Partner; with support from\u00a0Shivani Satyarthi, Principal Associate;\u00a0Aashima Johur, Principal Associate \u2013 Designate;\u00a0Ambuj Gupta, Associate;\u00a0Akshay Singh Ralhi, Associate;\u00a0Sanyukta Saraf, Associate and\u00a0Aakansha Bhardwaj, Associate.<\/p>\n
From a primarily telecom-based subscription business model, Nazara Technologies has diversified into a leading gaming and sports media platform, with offerings across gamified early learning, freemium mobile games, eSports, eSports media and skill-based, fantasy and trivia games with significant presence in India and across Africa and North America.<\/p>\n
Given that Nazara did not have comparable listed peers in the market, drafting of the business sections demanded nuanced attention to certain key aspects, including, among others, the diverse portfolio of offerings, key performance indicators such as EBITDA, segment EBITDA, NAV and net worth and statistical and other comparative information commonly used within the Indian mobile gaming industry to evaluate financial and operating performance of the Company, its market positioning, Intellectual Property, particularly for the eSports business, where both content and event IP are crucial factors, various models for monetisation across segments, including, subscriptions, ad revenues, media licensing, broadcasting, in-app purchases, etc and most importantly, the legality of real money gaming.<\/p>\n
In addition to the nuanced business model, the large and diversified corporate structure of Nazara, which included 19 subsidiaries, both domestic and overseas, and the large pre IPO shareholder base of over 2,000 shareholders added to the complexity of the transaction.<\/p>\n
As a part of the Transaction, 5,294,392 equity shares of face value of INR 4 each were allotted for cash at a price of INR 1,101 per equity share, aggregating to INR 582.69 crores.<\/p>\n
Other parties and advisors involved in the Transaction\u00a0included ICICI Securities Limited, IIFL Securities Limited, Nomura Financial Advisory and Securities (India) Private Limited, and Jefferies India Private Limited (Book running lead managers (BRLMs)).<\/p>\n
The Transaction was signed\u00a0on October 17, 2020 and closed on March 30, 2021.<\/p>\n","protected":false},"excerpt":{"rendered":"
Cyril Amarchand Mangaldas advised Nazara Technologies Limited (Nazara\/Company) and its promoters, Vikash Mittersain, Nitish Mittersain and Mitter Infotech LLP, on its recently concluded Initial Public Offer (IPO). As Indian counsel to the Company, we were responsible for drafting the entire document, including depicting Nazara\u2019s complex business model across various business verticals and the analysis of […]<\/p>\n","protected":false},"author":1,"featured_media":60612,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[85],"tags":[47505],"class_list":["post-60608","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-law-news","tag-first-online-gaming-company-ipo-in-india"],"yoast_head":"\n