Greaves Electric Mobility (GEML), a manufacturer of electric vehicles (EVs), filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on December 23 to begin the process of becoming public. Parent company Greaves Cotton stated in a filing with the exchanges that the IPO will include an offer for sale (OFS) component of up to 18.93 Cr shares and a new issue of shares valued at INR 1,000 Cr. Abdul Latif Jameel Green Mobility Solutions will sell 13.83 Cr shares as part of the OFS, while promoter Greaves Cotton will sell 5.1 Cr shares.
Both the BSE and the NSE will list the stock. “Ampere” is the brand name under which Greaves Electric sells electric scooters. Additionally, it produces three-wheelers under various trademarks. Through a secondary purchase in 2019, it acquired all of founder Hemalatha Annamalai’s shares, completing its takeover of the then-Ampere Vehicles. According to a media report, Greave Electric Mobility’s initial public offering (IPO) is expected to have a total value of approximately INR 1,000 Cr.
How Company Plans to Utilise Proceeds?
According to reports, the business intends to use INR 375.27 Cr to improve the tech skills at its Bengaluru technology centre and engage in product and technology development. The EV manufacturer will also invest INR 82.9 Cr to build internal battery assembly capabilities, and another INR 27.8 Cr will be used to further the company’s digitisation initiatives and implement IT infrastructure. Additionally, GEML intends to set aside INR 73.67 Cr to expand its ownership of MLR Auto, an EV brand and subsidiary. Additionally, INR 19.89 Cr and INR 38.26 Cr have been allocated for the expansion of the manufacturing capacity of its subsidiaries MLR Auto and Bestway Agencies, which manufacture e-rickshaws under the ELLE brand.
A portion of the new money raised from the IPO will be used for general business needs and to finance inorganic development through strategic acquisitions. Greaves Electric Mobility is apparently considering financing a pre-IPO placement of up to INR 200 Cr prior to the public offering. According to the report, if a pre-IPO placement is made, the EV manufacturer may lower the amount of the new issuance.
Current Financial Dynamics of Greaves Electric
Compared to INR 20 Cr in the previous year, Greaves Electric reportedly recorded a loss of INR 691.57 Cr in the fiscal year 2023–24 (FY24). In the meantime, operating revenue decreased to INR 611.81 Cr from INR 1,121.57 Cr in FY23. In the first half (H1) of FY25, the startup reported operational revenue of INR 302.23 Cr on a net loss of INR 106.15 Cr. Greaves Electric has been navigating challenging waters for the past two years, and now it intends to list on the stock exchanges. The EV manufacturer was convicted by the Ministry of Heavy Industries in 2022 of violating localisation requirements under the controversial Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME)-II program. The government then sent the EV manufacturer a recovery notice worth INR 125 Cr. Last year, the Ampere manufacturer finally made the payment.
PhysicsWallah, a prominent Edtech startup, has gone public in anticipation of its 2025 initial public offering (IPO). A resolution to rename the edtech unicorn from PhysicsWallah Private Limited to PhysicsWallah Limited, a public business, was passed by the board earlier this month. In a regulatory filing, the company stated, “… the board of directors of the company be and is hereby accorded to change the name of the company from “PHYSICSWALLAH PRIVATE LIMITED” to “PHYSICSWALLAH LIMITED” by removing the word “Private” before the word “Limited” from the company’s name and amending the name clause of the company’s memorandum of association as well as all other papers, documents, and matters created to give effect to the changed name accordingly.” According to the prominent edtech company, it intends to issue its equity shares on “one or more stock exchanges.”
Preparation for the Upcoming IPO
Axis Capital, Kotak Mahindra Capital, Goldman Sachs, and JP Morgan were announced earlier this year as the company’s chosen bankers for its anticipated $400 million to $500 million initial public offering (IPO) next year. Notably, at a valuation of $2.8 billion, the edtech giant raised $210 million in its Series B fundraising round headed by Hornbill Capital in September of this year. The round also included participation from Lightspeed Venture Partners and current investors WestBridge Capital and GSV Venture. After obtaining a $100 million funding round from Westbridge and GSV Ventures at a valuation of $1.1 billion, PhysicsWallah became a unicorn in 2022. Since then, it has acquired other businesses and entered the offline market to broaden its product offerings. Alakh Pandey and Prateek Maheshwari founded the business in 2020, and it now has hybrid and offline locations in over 105 Indian cities.
What PhysicsWallah Offers?
Two Gurukulam Schools, test preparation in forty-three categories, a skilling vertical, and verticals for higher education and study abroad are just a few of the educational segments that PhysicsWallah offers. Additionally, it asserts that its 112 YouTube channels in five vernacular languages provide free education to more than 4.6 Cr students. The net loss for PhysicsWallah increased from INR 84.06 Cr in FY23 to INR 1,131.2 Cr in FY24, the fiscal year that ended in March 2024. In FY24, operating revenue climbed 2.6 times to INR 1,940.4 Cr from INR 744.3 Cr the year before.
Amit Sachdeva, a former CFO at Blinkit, was appointed as the new chief financial officer of Physics Wallah (PW) last month. Sachdeva will oversee the company’s finance and strategic activities as the Noida-based edtech startup prepares for its initial public offering (IPO). According to a release, PhysicsWallah hopes to further its objective of offering high-quality education, promote sustainable growth, and improve its financial management and planning under his direction.
The Securities and Exchange Board of India (Sebi) has, as anticipated, strengthened the rules pertaining to IPOs for small and medium-sized businesses. The capital market regulator set a cap on shares that could be sold through the offer for sale (OFS) route and implemented profitability standards during its Board meeting on 18 December.
Before submitting their DRHP, SMEs must now demonstrate an operational profit of at least around INR 1 crore for two of the previous three fiscal years. Furthermore, the OFS size shouldn’t exceed 20% of the issue size overall. In addition, through the IPO, these stockholders are not permitted to sell more than 50% of their whole holdings.
Tightening the Lock-In Period
Promoters who hold more than the minimum promoter contribution (MPC) are subject to longer lock-in periods. One year will be the lock-in period for half of such excess holdings, and two years for the other half. In terms of allocation, the main board IPO process and the NII allocation technique for SME IPOs are identical. 15% of the entire issue size, or INR 10 crore, whichever is less, is the maximum amount allotted for general corporate purpose (GCP) in SME IPOs.
According to the new regulations, debts to promoters, promoter groups, or associated parties cannot be repaid with the proceeds of an SME IPO. In addition, the public will now have 21 days to examine and comment on SME IPO DRHPs. The DRHPs will be made available by stock exchanges via QR codes and public notifications.
New Rules Will Change the Business Dynamics
A new set of guidelines for post-IPO compliance has been developed. If SME businesses follow the rules for main board listing, they can still raise money without moving to the main board. SME-listed companies would be subject to the same related party transaction regulations as main board-listed companies, with a lower threshold of 10% of yearly consolidated turnover, or INR 50 crore.
New rules have also been agreed upon by the Sebi board to guarantee that funds raised by mutual funds through New Fund Offers (NFOs) be deployed on schedule. The goal of the new structure is to incentivise AMCs to only collect as much money in NFOs as may be used within an acceptable time limit, typically 30 days.
Reforms to improve the ease of doing business for Debenture Trustees, ESG rating agencies, InvITs, REITs, and SM REITs are among the other improvements that the board has adopted. Sebi chooses to change the rules governing investment banking. On December 18, the Sebi board decided to limit the scope of activity for investment banks and merchant bankers. Under the new regulations, merchant bankers will only engage in activities that the Sebi has approved. Within two years, any activities that are not allowed should be divided into a different legal organisation with a different brand name.
According to reports, fintech unicorn InCred Financial Services has started the process of going public and intends to generate between INR 4,000 Cr (about $470 million) and INR 5,000 Cr (roughly $590 million) through an initial public offering (IPO) in the latter part of next year. According to a source cited by various media reports, the fintech giant InCred Finance is considering a valuation between INR 15,000 Cr (about $1.78 billion) and INR 22,500 Cr (around $2.6 billion). By January 2025, the business intends to select merchant bankers to lead its public offering. According to reports, “the company wants to launch a Diwali 2025 initial public offering and aims to appoint four banks by January.” An offer for sale (OFS) component is also anticipated to be included in the IPO, allowing investors to sell their firm shares and record returns. Notably, in September, Bhupinder Singh, the founder and group CEO of InCred, stated that the fintech startup would only list on the stock exchanges if KKR, a prominent global private equity (PE) firm that owns 13.4% of the company, agreed to sell its position during the initial public offering (IPO).
Entering the Unicorn Club
A year after InCred announced that its lending division had joined the exclusive unicorn club after raising $60 million in its Series D round, which was led by Ranjan Pai of Manipal Education and Medical Group, the company decided to list on stock exchanges. As a fierce funding winter dried up money across the startup ecosystem, InCred became one of only two firms (the other being Zepto) to become unicorns in 2023, with a $1.04 billion fundraising campaign.
InCred’s Business Operations
Bhupinder Singh founded InCred Group in 2016, and through its three distinct verticals, it operates in the banking, financial services, and insurance (BFSI) industry. InCred Finance and InCred Capital are the loan and wealth and asset management verticals, respectively, while InCred Money deals in retail bonds and alternative investments. In addition, InCred has investors including Moore Capital, Elevar Equity, Investcorp, OAKS, and Abu Dhabi Investment Authority (ADIA). At the conclusion of the fiscal year 2023–24 (FY24), InCred Finance reportedly had assets under management (AUM) of INR 9,039 Cr, up 52% year over year (YoY). In FY24, InCred’s consolidated net profit increased 162% to INR 316.3 Cr from INR 120.9 Cr the year before. Operating revenue increased from INR 864.6 Cr in FY23 to INR 1,270 Cr, a 47% increase.
With the IPO, InCred reaches a major milestone and establishes itself as a prominent player in the fintech and NBFC sectors in India. The company hopes to attract market attention for its eagerly awaited public debut in 2025 with its robust financial performance, diversified business plan, and support from international investors.
The SME-focused non-banking loan company Aye Loan Limited (previously Aye Finance Private Limited) plans to raise up to INR 1,450 crore through an IPO. According to documents obtained by a media outlet, the company’s board authorised the IPO plans at an Extra-Ordinary General Meeting (EGM) on December 11.
A new issue of equity shares up to INR 885 crore and an offer for sale (OFS) of equity shares totalling INR 565 crore are both part of the planned IPO. The offering is a component of Aye Finance’s plan to strengthen its financial position and grow its business in the cutthroat lending industry, but it is contingent upon regulatory approvals and market conditions.
After years of rapid expansion, the announcement comes as Aye Finance is eager to increase its presence in the cutthroat lending industry. The market’s reaction and the regulatory landscape, however, will ultimately determine the IPO’s outcome.
ESOP Modification and Revamping of Management
The EGM authorised changes to the company’s ESOPs, including plans for 2016, 2020, and 2024, in addition to the IPO with the goal of improving employee incentives. The resolutions also contained changes to the conditions of significant executive appointments, such as the nomination of Aditya Misra as a non-executive, non-independent director and Sanjay Sharma as Managing Director of ABC Impact.
The Singapore-based ABC Impact led a Series G fundraising round in September that saw the microlending platform successfully raise INR 250 crore. British International Investment also participated in the round. Together with the $30 million in debt financing the company had previously secured in June, this equity investment increased Aye Finance’s total equity fundraising to INR 1,500 crore.
Five non-executive and non-independent directors, primarily representing investors, also resigned during the meeting for personal reasons. When a private corporation wants to go public, it is normal practice to tighten the board.
These directors were Gaurav Malhotra from British International Investment, Kaushik Anand Kalyana Krishnan from A91 Emerging Fund, Kartik Srivatsa from LGT Capital Invest Mauritius PCC, Navroz Darius Udwadia from Alpha Wave India, and Vivek Kumar Mathur from Elevation Capital.
Financial Book and Company’s Operations in FY24
At the end of FY24, the loan book of Aye Loan Limited was worth INR 4,473 crore, the net profit increased from INR 57 crore in FY23 to INR 161 crore, and the annual growth rate was 46% from FY18 to FY24. In FY24, their entire revenue increased from INR 637 to INR 1,066 crore.
The business focuses mostly on small and medium-sized businesses and excels in working capital financing. Microbusinesses with yearly sales between Rs 10 lakh and Rs 1 crore, such as kiranas or general stores, dairies, manufacturers, and merchants, are the main recipients of loans from Aye Finance. As of June 30, 2024, hypothecation loans and quasi-mortgage loans, with an average ticket size of INR 1-1.5 lakh, accounted for 92% of the AUM.
The omnichannel jewellery business Bluestone has submitted its first initial public offering (IPO) draft red herring prospectus (DRHP) to market watchdog SEBI. An offer-for-sale component of up to 2.40 Cr equity shares and a new issue of shares valued at INR 1,000 Cr will make up the IPO. During the IPO, current investors Accel and Kalaari Capital will sell their shares. Saama Capital would sell 41 lakh shares, while Kalaari will sell up to 79.78 lakh shares through two funds. Accel India will sell 30.27 lakh shares, and IvyCap Ventures will sell 31.26 lakh shares. 17.53 lakh shares would be dumped by Iron Pillar. Sunil Kant Munjal, the chairman of Hero Enterprise, would also sell 40 lakh shares through the OFS.
The issue’s book-running lead managers are Kotak Mahindra Capital Company, IIFL Capital Services, and Axis Capital. It is suggested that the equity shares be listed on both the BSE and the NSE.
How Company Plans to Utilise Proceeds
The company’s working capital needs and other corporate goals will be funded with the new IPO revenues. INR 750 Cr of the entire new issue will be used to cover working capital needs. The remaining INR 250 Cr will be used for a variety of general business objectives, including partnerships and joint ventures, strategic initiatives, shop openings, loan repayment and prepayment, and more. Purchasing fixed assets like furniture and fixtures, paying back franchisee debts, and handling marketing, maintenance, insurance, and administrative costs are all included in general corporate operations.
In the fiscal year 2023–2024 (FY24), BlueStone‘s operating revenue increased 64% to INR 1,265.8 Cr, while its net loss decreased 15% year over year (YoY) to INR 142.2 Cr. Additionally, the business revealed its financial results for the first three months of FY25 (Q1 FY25). In the first quarter of FY25, it reported a net loss of INR 52.22 Cr on INR 359.19 Cr in operating revenue. INR 418.14 Cr was spent in total for the quarter that ended in June 2024.
How Brand Operates?
BlueStone, an omnichannel jewellery firm founded in 2011 by Kushwaha and Vidya Nataraj, offers over 8,000 designs for rings, pendants, earrings, and other items. Some of its retail locations are owned by it, while the others are run as franchises. It asserts that it has more than 200 retail locations nationwide. BlueStone has competition from established jewellery businesses such as GIVA and CaratLane. Neo Markets provided the business with INR 100 Cr in debt capital in June. To date, BlueStone has raised more than $200 million in total fundraising.
Prior to delaying its initial plans to go public in 2022, the company raised money from private equity (PE) firms. In the world’s second-largest market for gold jewellery after China, BlueStone is establishing itself as a major player alongside listed behemoths like Titan’s Tanishq brand, Kalyan Jewellers, Senco Gold, and Tribhovandas Bhimji Zaveri, among others.
On December 11, 2024, One Mobikwik Systems Limited is scheduled to make its much-anticipated initial public offering (IPO) to the Indian primary market. According to sources, shares of fintech giant MobiKwik are trading almost 40% higher on the grey market from the upper end of the price range of INR 265 to INR 279 ahead of the start of the company’s initial public offering (IPO). On December 8, MobiKwik shares were trading at INR 391 per, according to Investor Gain. On December 11 and 13, the company’s first public offering (IPO) will open and close. Brokers’ optimistic assessments of the IPO may have contributed to the price spike in the grey market. With a long-term outlook, Bajaj Broking advised investors to subscribe to MobiKwik’s IPO. According to the brokerage’s IPO note, MobiKwik intends to expand its operations into other markets, which could increase its earnings in the upcoming years.
Reducing IPO Size
Additionally, Kotak Securities has praised the company’s decision to reduce the size of the IPO, stating that it is an appealing investment opportunity. The smaller IPO size and targeted funding allocation show strategic intent. According to Kotak, if handled carefully, the IPO could position MobiKwik as a pioneer in defining the direction of digital finance. In an attempt to raise INR 572 Cr, MobiKwik submitted their red herring prospectus last week. It had previously been approved by market watchdog SEBI to raise INR 700 Cr through its initial public offering. Only a new issue of shares is included in the public offering. Additionally, the business reduced its 2021 valuation of roughly $1.5 billion to $1.7 billion to about $255 million for its IPO.
Current Financial Situation of MobiKwik
According to Bipin Preet Singh, the founder and CEO of MobiKwik, it is disheartening for investors when an initial public offering (IPO) with a high value underperforms after listing. People think they are horrible companies that spend a lot of money, but someone needs to change that. “We don’t mind if it means receiving a lower valuation,” he stated. MobiKwik, on the other hand, turned a profit in FY24 but went into the red in the first quarter of 2024–25 (Q1 FY25). Compared to a net profit of INR 3 Cr in the same quarter last year, it reported a net loss of INR 6.6 Cr in Q1 FY25. During the reviewed quarter, operating revenue was INR 342.2 Cr. Compared to the previous fiscal year’s net loss of INR 83.19 Cr, MobiKwik reported a net profit of INR 14.1 Cr in FY24. Operating revenue increased from INR 539.5 Cr in FY23 to INR 875 Cr, a 62% increase.
SEBI has approved the initial public offerings (IPOs) of coworking space provider Smartworks and logistics business Ecom Express. According to the information on SEBI’s website, the regulator made the remark against Ecom Express on November 29.
A prior, on November 28, Smartworks received the observation. The public offering is approved by SEBI when an observation is issued. In August, Ecom Express submitted its draft red herring prospectus (DRHP) for an initial public offering (IPO) for INR 2,600 Cr. This includes an offer for sale (OFS) for INR 1,315.5 Cr and a new issue of equity shares up to INR 1,284.5 Cr. In the same month, Smartworks submitted its draft IPO documents. The company’s initial public offering (IPO) will include an offer for sale (OFS) of up to 67.49 lakh equity shares and a new issue of equity shares valued at INR 550 Cr. Before submitting its Red Herring Prospectus (RHP), the coworking company also intends to raise INR 110 Cr through a pre-IPO placement.
Operations and Financial Dynamics of Both the Firms
The late TA Krishnan, Manju Dhawan, K Satyanarayana, and Sanjeev Saxena founded Ecom Express in 2012 as a pure-play provider of B2C ecommerce logistics solutions. It makes money by providing services to consumers in the Indian e-commerce sector, which includes D2C, vertical, horizontal, and fast commerce platforms. In the fiscal year 2023–2024 (FY24), the company reported a net loss of INR 255.8 Cr on operational sales of INR 2,609 Cr. Conversely, Smartworks, a shared workspace service that provides businesses with customised coworking solutions, was established in 2016 by Neetish Sarda and Harsh Binani.
With more than 40 locations in 14 cities, including Bengaluru, Kolkata, Delhi NCR, and Mumbai, it boasts more than 8 million square feet of office space. It says it serves over 600 businesses, such as Moglix, DHL, Starbucks Coffee, and Honeywell. It faces competition from companies like IndiQube, WeWork India, and Awfis. According to its DRHP, Smartworks’ operating revenue increased to INR 1,039.4 Cr in FY24, while its net loss decreased to INR 49.8 Cr.
IPOs are Becoming More Common Among Startups
With initial public offerings (IPOs) emerging as a crucial means of obtaining funding, the Indian startup scene is undergoing a significant transformation. For the second time in history, mainboard initial public offerings (IPOs) have raised more than INR 1 lakh crore in 2024. Over INR 1.03 lakh billion has been raised through 70 initial public offerings (IPOs) this year, the most since 2007. In contrast, 63 firms raised more than INR 1.19 lakh crore through IPOs in 2021, compared to 100 IPOs that were launched in 2007 and raised INR 34,179 crore.
This remarkable expansion coincides with a slowdown in the global IPO markets, which has seen a 16% drop in capital raised and a 12% drop in listings. India has distinguished itself on the international scene with its distinct blend of economic stability, a flourishing digital economy, and a developing private equity (PE) and venture capital (VC) ecosystem.
Most parents will rebuke their children for spending too much time on their computers, but what if they had the chance of owning the listed gaming company in India? That’s what Nitish Mittersain accomplished as a 17-year-old gamer. Nitish’s early years were nothing like other Indian families because for him a personal computer was not a toy, but a canvas for his creativity.
A son of a textile business owner, Nitish’s life has been a total rollercoaster even before he was the legal age to drink. Due to his father’s business, he was forced to deal with the underworld, and with the addition of the dot-com burst, he was left with a crippling debt of INR 3 crores.
Starting his business early and loving all things computer-based he did not pay much attention to his health. But when his wife was expecting their first child, he realized that he had become overweight and might be prone to diabetes and heart disease. When his son was born it became clear that he needed to prioritize his health by changing his diet and adding an exercise routine.
Nitish Mittersain – Biography
Name
Nitish Mittersain
Born
Mumbai
Nationality
Indian
Profession
Founder & MD of Nazara Technologies Angel and Investment Partner
Nitish started his coding and gaming curiosity at the young age of just 14 years. This was mainly due to his rich entrepreneurial background and the profound influence his grandfather had on him. Their dedication and passion for the textile business is what fueled his passion for gaming. But non-believers often told his parents that Nitish might not even go to college due to his gaming habits. But Nitish’s passion peaked when his father bought him his very own personal computer, which changed everything.
Nitish’s strong entrepreneurship value comes from his family’s understanding of value for money and he started earning his own money by polishing shoes for INR 2 a pair. They helped instill a sense of passion and the value for money that most people of his generation often overlook.
Just from 15 years of age, Nitish started his journey in the world of business. He started creating websites under Internet 3000 Technologies (3K), and at just 19 years old, he founded the company Nazrana in 1998. He recalls that even before starting his own company he worked for an agency where he created websites on a daily basis.
Two years later the dot-com crash happened and that was the toughest period for both the company and him. But it taught him the importance of cash flows, long-term sustainable business practices, and profitability. As per his statement, the dot-com crash was definitely a tough period but he gained tremendous insights from it. Only 21 when the crash happened in 2000, he found himself in debt for INR 3-4 crores with no other source of income. The years 2000-2002 were tough on him but helped shape his entire company’s philosophy. Rather than looking at vanity metrics, their focus shifted mainly toward profitability and cash flow.
Nitish Mittersain – Mentors and Milestones
Nitish Mittersain and Mentor Shammi Kapoor
Fascinated by technology, Nitish was mentored by actor Shammi Kapoor who provided him with a space for learning. Nitish admits that the actor mentored him and played a very important role in his thought process throughout his formative years. Being passionate about computers and technology, Mr. Kapoor would let Nitish use his three-four Macintosh computers to not only code but also build his business ideas.
Another turning point in his life was when Sachin Tendulkar endorsed his company for a cricket game. In 2004, after the dot-com crash when Nitish entered the gaming industry, he struck a pivotal deal with Sachin Tendulkar. Securing this deal meant that he now had a breakthrough with a major player like Airtel, who rushed to sign him on before he took his game (and Sachin Tendulkar) to another operator.
Thanks to this partnership, CNBC’s Young Turks invited Nitish which in turn caught the attention of investor Sandeep Singhal from Westbridge Captial. By 2005 the funding came through at Rs. 6 Crore for 40%.
Nitish Mittersain – Nazara’s Telco Success Model
Nitish Mittersain – Nazara’s Telco Success Model
By 2014, Nazara had mastered the telco monetization model and achieved a profit by expanding into 50 countries. The business model was based on a subscription-based gaming channel for telcos, much like Netflix. In 2014, the company made a profit of INR 250 crore.
Over the next couple of years, Nitish and Nazara found their footing and realized that telco monetization was very efficient. They established a successful model in India between 2007-2009 and then replicated it to over 50 countries (Sri Lanka, Middle East, Africa) from 2009-2014.
But Nitish continued to run his business on the lean and mean philosophy he had put into place after the dot-com crash. This meant that they not only remained profitable but were more focused on cash flow. With this ideology, his profits increased to INR 250 crores after tax, with an initial funding of only INR 12 crores.
In 2014-2015, Nitish thought about returning to his real dream of expanding into multiple genres of gaming. At that point, the Indian market has evolved thanks to mobile usage, better data access, and a jump in digital payment plans. During this time the market boom reminded him of his actual dream and presented him with the chance to expand his gaming dream.
Nitish realized that telco-based gaming was profitable but the potential for gaming was seeing a boom with the present generation. It was during this time that he built the “Friends of Nazara” strategy where they would partner with talented individuals from the gaming industry and create a synergy. This strategy meant that he would invest in their companies (with a major stake) but let the founders run their ventures with the support of Nazara.
By using this approach not only would Nitish leverage the expertise and passion for new founders but in return he would offer them strategic guidance and funding. This “House of Brands” model helped Nitish and his team stay involved in multiple ventures while the founders retained their passion and workflow independence. This pivotal shift in strategy in 2015-2016 laid the very foundation that helped him succeed.
Nitish Mittersain – Achievement with the first IPO
With the backing of the late Rakesh Jhunjhunwala (INR 200 crores), Nitish decided to go public in 2021 with Nazara. Jhunjhunwala was impressed with how he had built the company on a sustainable business model and had focused more on profitability and cash flow. Rakesh would not only invest in Nazara but also take a personal interest in it.
Nazara’s IPO is one of the most subscribed options, that achieved over 175 times oversubscription. But, in spite of such a euphoric experience, the fame and glory of the IPO’s success only lasted for a brief moment. For Nitish, the main question plaguing his mind was – what comes next? So, from the IPO the focus of the entrepreneur shifted from the company to the shareholders and meeting quarterly targets.
Post IPO Nazara still saw a boom. Revenues increased from INR 450 crores in 2021 to INR 1100 crores by 2024, with an EBITDA of INR 128 crores. Recently, Nazara raised nearly INR 950 crores with a substantial investment from SBI.
Just as other investors helped Nazara rise to its glory, Nitish has also invested in close to 90 companies as an angel investor. Talking about his investment ideas, he added that the market is changing so fast. So interacting with new founders means that not only will they learn from you, but you from them. As per his analysis, Indian startup investments will be one of the highest-returning asset classes in the world in the upcoming 10 years.
In the upcoming years, Nitish is looking forward to making more acquisitions.
Nitish Mittersain – Famous Quotes!
“(India) is a great place to be, to create wealth for themselves and for everybody here in the country. I’ve been telling a lot of startup founders that in five years, we should convert NSE into India’s Nasdaq”
“I believe that Indian startup investments will be the highest returning asset class in the world for the next 10 years.”
FAQ
Who is the owner of Nazara Technologies?
The owner of Nazara Technologies is Nitish Mittersain, the founder and managing director.
Is Nazara debt-free?
Nazara Technologies is not fully debt-free. It has raised funds through preferential share issues to support its growth plans and financial stability, reflecting some external funding reliance.
Is Nazara Technologies profitable?
Yes, Nazara Technologies is profitable. In FY24, its profit rose by 21.8%, driven by growth in e-sports and gaming segments.
On November 22, shares of Zinka Logistics Solutions, the parent company of logistics giant BlackBuck, went public on the NSE for INR 280.90, a slight premium of 2.89% over the IPO issue price of INR 273. BlackBuck’s shares debuted on the BSE at INR 279.05, which was 2.21% higher than the issue price.
Due to the Maharashtra Assembly elections, BlackBuck’s November 21 market debut was postponed by one day. BlackBuck’s INR 1,115 Cr initial public offering (IPO) was oversubscribed by 1.8X, with offers for 4.19 Cr shares compared to the 2.25 Cr shares available. The IPO took place between November 13 and November 18.
The Growth of the Company
BlackBuck was established in 2015 as a truck aggregator by Rajesh Yabaji, Chanakya Hridaya, and Rama Subramaniam. Since then, the business has expanded and currently provides a wide range of services, including truck financing, fuel payments, FASTag or toll costs, load management, and telemetry. BlackBuck is a business-to-business marketplace that specialises in full truckload (FTL) transportation between cities. BlackBuck’s initial public offering (IPO) consisted of both a new share issuance of INR 550 Cr and an offer for sale (OFS) component of over 2.06 Cr shares.
The retail investor quota was subscribed 1.65 times, whilst the qualified institutional buyers (QIBs) part was booked 2.76 times. While non-institutional investors (NIIs) subscribed to the issuance by 24%, BlackBuck employees oversubscribed their quota by 9.86X.
The Current Valuation of the Company
BlackBuck set its valuation at INR 4,800 Cr in the run-up to the INR 1,115 Cr IPO, which is more than 32% less than its peak valuation of INR 7,100 Cr in 2021. For its IPO, BlackBuck proposed a price range of INR 259 to INR 273 per share. Accel and Flipkart, two early investors, could realise up to five times their gains at the upper price range of INR 273. Nevertheless, companies such as Swedish investment firm VEF AB and Peak XV Partners would record losses on the sale of their fractional stakes.
IPO is Getting Popular Among Startups
With initial public offerings (IPOs) emerging as a crucial means of obtaining funding, the Indian startup scene is undergoing a significant transformation. For the second time in history, mainboard initial public offerings (IPOs) have raised more than INR 1 lakh crore in 2024. Over INR 1.03 lakh billion has been raised through 70 initial public offerings (IPOs) this year, the most since 2007. In contrast, 63 firms raised more than INR 1.19 lakh crore through IPOs in 2021, compared to 100 IPOs that were launched in 2007 and raised INR 34,179 crore.
This remarkable expansion coincides with a slowdown in the global IPO markets, which has seen a 16% drop in capital raised and a 12% drop in listings. India has distinguished itself on the international scene with its distinct blend of economic stability, a flourishing digital economy, and a developing private equity (PE) and venture capital (VC) ecosystem.
This year, there has also been a lot of fundraising activity for SME IPOs. A record INR 7,700 crore has been raised through 215 SME IPOs so far. In contrast, 182 businesses raised a total of more than INR 4,686 crore when they went public last year.
Nitin Konde
