Mobile gaming company Nazara Technologies witnessed a strong response to its initial public offer (IPO), which was released on Wednesday. The Rakesh Jhunjhunwala backed company has set the IPO price band at ₹1,100 to ₹1,101 per equity share. The issue is expected to get over ₹583 crore at the upper end of the price band and is scheduled to close on Friday.
At the end of day 1, the mobile gaming platform IPO was subscribed four times. The issue received bids of more than 11.7 million shares against over 2.9 million shares on offer, PTI reported citing an NSE update. The issue of more than 5.29 million equity shares was subscribed 36 per cent by qualified institutional buyers (QIBs), the portion of non-institutional investors got subscribed 2.85 times and retail individual investors (RIIs) subscribed 16.75 times.
The managers of the offer are ICICI Securities, IIFL Securities, Jefferies India and Nomura Financial Advisory and Securities (India). Link Intime is the registrar to the issue.
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The stock was assigned a 'subscribe' rating by Aditya Birla Money, reported investing.com. “The gaming industry is set to grow at over 30 per cent CAGR over 2020-2023E on the back of high mobile growth, rising Internet penetration and increasing number of gamers. Nazara has widespread presence both in terms of geography and product portfolio, which offer strong growth visibility,” Aditya Birla Money said.
{{/usCountry}}The stock was assigned a 'subscribe' rating by Aditya Birla Money, reported investing.com. “The gaming industry is set to grow at over 30 per cent CAGR over 2020-2023E on the back of high mobile growth, rising Internet penetration and increasing number of gamers. Nazara has widespread presence both in terms of geography and product portfolio, which offer strong growth visibility,” Aditya Birla Money said.
{{/usCountry}}Jhunjhunwala held an 11.77 per cent stake in the company as of March 2020, according to the red herring prospectus document of the offer with the Securities and Exchange Board of India (Sebi).
For the year ending March 2020, the company has booked a loss amounting to over ₹266 million, as per the documents. Risk factors stated by the company involve losses of the group company in the last three financial years, any failure to grow existing relationships within the gaming ecosystem, distribution network and scale which can impact profitability and business growth etc.
The company is quoting a grey market premium of ₹840, Mint reported grey market trackers. The listing of equity shares is aimed at enhancing the brand name and providing liquidity to the existing shareholders. The shares are proposed to be listed on BSE and NSE.