Nazara Technologies raises Rs 100 crores before floating of IPO

Weeks after the company filed preliminary papers with capital markets regulator SEBI to float an initial public offering (IPO),Rakesh Jhunjhunwala-backed gaming firm Nazara Technologies Ltd has raised Rs 100 crore in funding from Instant Growth Ltd (IGL).

The firm is popularly known for its games on the World Cricket Championship, Chhota Bheem and Motu Patlu series. According to sources, Nazara will invest the proceeds in forging alliances and acquisitions to further bolster its position in the gaming ecosystem as well as strengthening its gamified learning offerings.

For the six months that ended September 30, 2020, Nazara Technologies reported a profit of Rs 10.1 crore while in the financial year 2020, it posted a profit of Rs 26.6 crore. Once listed, Nazara Technologies will become the first of its kind to get listed on the Indian stock market. This may create excitement among the stock market participants.

According to draft red herring prospectus (DRHP), Nazara Technologies’ issue will see a sale of 49.65 lakh equity shares by the promoters and existing shareholders. The equity shares are proposed to be listed on BSE and NSE. 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.