Nazara Technologies Unlisted Shares

It is one of the leading mobile games company headquartered in Mumbai, which is engaged in the acquisition of, value addition to and distribution, of mobile games across emerging markets such as India, Middle East, Africa, South East Asia and Latin America. The Company operations comprise of a Subscription business, Freemium business, and Esports business. The Company independent subsidiaries are Next Wave Multimedia, NODWIN GAMING and their investee companies include Hashcube Inc., Mastermind Sports Limited, Moonglabs Technologies Private Limited and HalaPlay Technologies Private Limited.

Nazara has diversified business models and comprises of Subscription, Freemium, eSports, Skill-Based Gaming in India and Chance based Gaming business in Kenya, Africa.

a) Subscription: Under this model, they depend upon telecom companies in India. Telecom companies offer gaming subscriptions to their subscriber base, which focussed on offering easy to play games. To address the low propensity to pay, the subscription services were offered through sachet pricing, with daily, weekly and monthly subscriptions and payment were collected by the Telecom carriers and they shared on average 50% revenue to the service providers like Nazara.

b) Freemium: Under this model, the company develops popular games and upload them on play and app store, from where it can be easily downloaded for free by mobile users. Users while using these games come across ads. These ads are the revenue source for Nazara Tech. So more popular the game, the more will be the revenue.

c) Play and Win: These are skill-based games where players compete against other players and win cash. The subscribers pay for playing games. This is how Nazara Tech earns revenue. Ex: sports fantasy

d) E-Sports or Competitive gaming: Under this model, amateur players watch the live stream of the match being played by the professional players on OTT platforms & listen to live commentary.

This is a very new concept. Let us understand this in detail.

We all watch a live cricket match on TV or OTT platforms like Hotstar. The company like Star Sports buys live streaming rights of a cricket match from the company/board who is organizing cricket. This is how the company/board who is organizing cricket earns revenue. Star Sports then earn from ads etc.

Now imagine, a game like PUBG, played by professionals in the indoor stadium and live streaming is shown on television or the OTT platform. Imagine you are sitting at home watching live games. This is the new concept that is picking up with a lot of pace in India. The company like Nazara will organize such games and sell media rights to players like Star Sports and earn revenue.

Nazara Tech is aiming to make a battery of these games which can be played by professionals. eSports is the fastest growing sports entertainment format among competitive gamers and Nazara has over 80% share of the Indian market through its majority stake in Nodwin.

Key Strengths and Growth in Future:

a) The company believes their ability to understand local gamer behavior in designing games and innovatively incorporating local, licensed, intellectual property to drive the growth of our network of games is one of our key strengths.

b) Their localized gamer insights are reflected in the popularity of some of their mobile games on the Google Play Store, such as, ‘World Cricket Championship 2’, ‘Chhota Bheem Race’, and ‘Motu Patlu Game’.

c) They believe that Nodwin Gaming is one of the leading enablers in the Indian Esports market with a first mover advantage. In addition to hosting and managing IP based gaming events such as the ESL India Premiership and Dew Arena by ESL, Nodwin Gaming also partners with other brands to create multiple gaming events intellectual properties in India, such as Mountain Dew Arena, Indian Gaming Show and Asus ROG Masters.

Some Popular Games by Nazara Technolgies

Nazara Technologies Unlisted Shares Details:

Total Available Shares:	200
Face Value:	₹ 4 Per Equity Share
ISIN:	INE418L01021
Lot Size:	50 Shares
Current Unlisted Share Price:	₹ Best in industry Per Equity Share

Promoters And Management:

Promoters of Nazara Technologies Limited Company are: 1. Mr.Vikash Mittersain is the Chairman and Managing Director of our Company. He has been associated as Director of the Company since its incorporation. He holds a diploma in industrial electronics from Walchand College of Engineering, Sangli. He has 38 years of experience in multiple business sectors. He is a member of Advisory Board on Dr. APJ Abdul Kalam Centre, Lucknow. He is also the founder and president of India Business Group. He has been part of various panel discussions and conferences including the sessions at VESIM Literati and Innovators Pitching Session at Maker Mela 2018. 2. Mr.Nitish Mittersain is the Joint Managing Director of our company. He holds a bachelor of commerce degree from the University of Mumbai. He founded our Company in 1999 and has been associated in the promotion of our Company for the last 18 years. He was selected as a member of the Young Presidents’ Organization in 2014 and he has been the recipient of many awards including the Visionary Award from the Vision Foundation in 2012, the Young Achievers Award from the Indo American Society in 2000 and the Outstanding Young Person Award from Junior Chamber International, Marine Lines in 2017. He is also a member of the MEF Asia Board. 3. Mitter Infotech LLP

Shareholding Pattern:

Shareholding Pattern as on 31.03.2019

Name of the Shareholder	No.of Shares	% of Holding
Westbridge Venture II Investments Holding	6,121,210	22.69
Rakesh Jhunjhunwala	3,294,310	12.21
IIFL Special Opportunity Fund	1,748,185	6.48
Emerging Investments Limited	5,50,810	2.04
Turtle Entertainment GmbH	485,018	1.76%

Financials of Nazara Technologies Unlisted Shares:

Standalone Financial Results of Nazara Tech( Fig. in Crores )

Year	Revenue	Expense	Share of net (loss)	OPM(%)	PAT	NPM(%)	Shares	EPS
2017	83	70	0	18%	9	11%	0.1989	3.72
2018	101	69	35.7	35%	-10	-10%	2.69725	-4.11
2019	55.4	52.2	0	7.40%	2.22	4.21%	2.74725	0.81

Consolidated Financial Results of Nazara Tech( Fig. in Crores )

Year	Revenue	Expense	Share of net (loss)	OPM(%)	PAT	NPM(%)	Shares	EPS
2017	202	130.4	0	36%	61	30%	0.1989	24
2018	180	131.1	35.7	30%	1.2	1%	2.69725	1.08
2019	183	173	0	13.40%	4.2	2.20%	2.74725	1.53

History of Dividends

Particulars	2013	2014	2015	2016	2017	2018	2019
Equity Shares	783,442	783,442	738,042	1,989,246	1,989,246	26,972,500	27,477,500
Face Value	10	10	10	10	10	4	4
Dividend Per Share	NA	NA	NA	Rs. 100	NA	Rs.151	Rs.0

Review of Financials of FY18-19 1. The company has registered profit after tax of Rs. 4.4 Crores in the financial year ended March 31, 2019, on a consolidated level as against Rs. 1.211 in the previous financial year ended March 31, 2018. 2. The EBITDA margins have declined on account of change in revenue mix with a contribution of esports and freemium increasing from 11.04% in the financial year ended March 2018 to 43.77% in the financial year 2019. 3. EBITDA margins will increase in the coming year as esports and freemium businesses see a sharp improvement in EBITDA margins over the years because of high player retention in mobile games and organic downloads increasing with word of mouth publicity. Likewise, media rights kick in for esports once an IP has been established and the scale of brand sponsorships increases with the maturing of the IP. 4. The Company has made the following allotments on the preferential basis: a) 34,959 Equity Shares of Rs.4/- each at a price of Rs. 728/- for cash aggregating to Rs. 25.40 million on private placement Basis to Azimuth Investments Limited on 18th July 2019. b) 4,71,740 Equity Shares of Rs. 4/- each at the price of Rs. 728/- aggregating to Rs. 343.40 million to the shareholders of Absolute Sports Private Limited on private placement basis for consideration other than cash (i.e. by way of swap of 1,07,450 Equity shares of Absolute Sports Private Limited with the Equity shares of the Company) on 16th September 2019. Nazara Technology Annual Report 2018-19 Nazara Technology Annual Report 2017-18 Research Report by UnlistedZone- 30.11.2019

Company Address:

Nazara Technologies Limited 51-57, Maker Chambers 3, Nariman Point Mumbai 400 021, Maharashtra, India Phone No. +91 22 40330800 Fax No. +91 22 22810606 E-mail: cs@nazara.com website www.nazara.com

Discussion on Nazara Technologies Unlisted Shares:

EGM Notice of Nazara Technologies to be held on 30.03.2020

( https://dyvmwwyqozzzb.cloudfront.net/main/Nazara_EGM_Notice.pdf)

(i) The consent of the members be and is hereby accorded to offer and issue up to 201,020 equity shares of the face value of Rs. 4/- each at a premium of Rs. 724/- aggregating to Rs.14,63,42,560/-.

(ii) The price is based on the valuation report issued by registered valuer CA Harsh Chandrakant Ruparelia, Chartered Accountant.

(iii) As per the terms of the Share Purchase Agreement dated March 2, 2020, KAE Capital Fund II, Kalysta Capital Fund II (Mauritius), are getting Nazara Tech shares for a swap of Halaplay Technologies Private Limited (Halaplay).

HalaPlay is a Daily Fantasy Sports (DFS) platform that empowers serious and casual sports enthusiasts to play cash based quick, simple and interesting games. DFS is the shortest and quickest version of fantasy sports where users can create a team, enter leagues and win cash prizes at the end of every game. Yes! Every game! Now there is no need to wait for a season to get over to earn prizes.

https://unlistedzone.com/nazara-tech-is-on-mojo-mode-and-acquiring-gaming-companies-to-increase-portfolio-03-12-2019/

#StartupStreet |

NazaraGames wants to up the ante when it comes to geographical expansion.

JudeSannith24 caught up with manishdiesel, CEO of NazaraGames on #InvestorEye.

https://t.co/Vqc83zwzhF https://twitter.com/CNBCTV18News/status/1199342991866941452?s=20

************IPO News*****************************
Game developer and publisher Nazara Technologies will launch its IPO in early 2020, founder Nitish Mittersain told Inc42 recently.

The launch of the company’s IPO will be preceded by the closing of multiple acquisition deals, Mittersain added. One of these acquisitions is that of a sports media platform Sportskeeda, officially announced recently.

The company had earlier planned to launch its IPO in 2018 but later decided to postpone the plans because of the market slump, according to Nitin.

(i) Nazara Technologies Ltd a leading global interactive gaming and digital sports media company has signed an Investment Agreement with Paper Boat Apps and its promoters on 11th October 2019 for investment up to Rs. 83.5 Crores in Paper Boat Apps, a Mumbai based indie studio.

(ii) The company intends to acquire a majority stake of 51% at a pre-money valuation of Rs. 154 Crores. The said acquisition is subject to the approval of shareholders at the General meeting of the Company. Paper Boat Apps is the creator and publisher of Kiddopia, an award-winning, subscription-based preschool edutainment app. The aforesaid acquisition is a part of a series of strategic investments made by the Company in various gaming Companies in order to expand the business inorganically and create value for the investors.

(iii) Further, the company believes that Kiddopia will address the concern where young children are found to consume digital content through their parent’s devices. Kiddopia offers a positive alternative while bringing high-quality, curated educational content packaged within an entertaining framework that keeps both kids healthy, and parents happy. Kiddopia will be leveraged to over 100 million users through the Nazara network.
Kiddopia Company Information Kiddopia offers a wide array of interactive games and activities that foster cognitive development, self-expression and also social-emotional learning. Till date, the app has been downloaded by more than 2.5 million parents around the world and has over 100,000 active subscribers. The break-even period is 7 months for a customer.

(iv) The company has grown 5x in the last 2 years and received immense recognition, awards and fame. Kiddopia has been awarded the Tilly-Wig Brain Child Award, Parents Choice Award, the National Parenting Product Award and many more. Kiddopia is completely ad-free and adheres to the highest standards of privacy and kid’s safety.

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The company has issued an interim dividend of Rs 151/- per share paid for the financial year ended
March 31, 2018

List of Shareholders as on 31.01.2018 of Nazara’s Technologies( Total Equity Shares= 26,972,619)

A) Biggest Public Shareholder

(i) Rakesh Jhunjhunwal= 12.21%
(ii) IIFL Fund= 22.1%
(iii) Westbridge Ventures II Investment Holdings= 22.69%

B) Promoter’s Holding( No. of Equity Shares=7492510) which is equivalent of 27.7%.

13-Dec-2017 – Economic Times-News:

(i) Ace investor Rakesh Jhunjhunwala has picked up a stake in gaming company Nazara Technologies for Rs 180 crore in his first bet on India’s digital space. Nazara owns popular titles like Chhota Bheem and Virat Cricket. The investment in Nazara helped the Mumbai-based company raise Rs 540 crore in the past three weeks.

(ii) Jhunjhunwala has earlier flagged concerns about business models and valuations of Indian e-commerce and digital companies like Flipkart saying they need to be built with their own cash flows. What attracted him to Nazara is sustained profitability and the long-term potential of the gaming space.

(iii) As per Jhunjhunwala, I am always on the lookout for promising companies which are leaders in high-growth verticals. Nazara has a consistent track record of delivering profits, cash flows, along with efficient use of capital and high RoE.

(iv) For Nazara, the development comes after it raised Rs 330 crore from IIFL Special Opportunities Fund last month.

What is the price of each share when he bought

I think it was around 550.