Rakesh Jhunjhunwala-backed Nazara Technologies gets Sebi nod to float IPO

Rakesh Jhunjhunwala-backed Mobile gaming company Nazara Technologies, which is popularly known for its games on World Cricket Championship, Chhota Bheem and Motu Patlu series, has received markets regulator Sebi's go-ahead to float an initial public offering. Nazara, which filed draft papers with Sebi to launch an IPO on February 1, obtained its "observations" on April 20, as per the latest update with the market regulator.

Sebi's observations are necessary for any company to launch public issue like initial public offer (IPO), follow-on public offer (FPO) and rights issue, said PTI. 

Going by the draft papers, Nazara's public issue will see sale of 5,543,052 equity shares by existing shareholders WestBridge Ventures Investment Holdings and Mitter Infotech. 

Explaining the rationale behind the IPO, the company said listing of equity shares will enhance its brand name and provide liquidity to the existing shareholders.

"The listing will also provide a public market for equity shares in India," the company said.

ICICI Securities and Edelweiss Financial Services will manage the company's IPO. The equity shares are proposed to be listed on BSE and NSE.

In December, ace investor Rakesh Jhunjhunwala had acquired a minority stake in Nazara for about Rs 180 crore, reported PTI. 

Nazara runs gaming subscription services to mass mobile internet users comprising largely of first time gamers across Africa, the Middle East, South East Asia, Latin America and the Indian subcontinent. It has operations in over 60 countries across emerging markets.