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Nazara Technologies IPO subscribed over 3.3 times on day one, retail portion attracts higher demand

Ahead of the IPO, the gaming firm raised Rs 262 crore from 43 anchor investors on March 16

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The Initial Public Offering (IPO) of Nazara Technologies received stellar response via investors on day one of the company's bidding process on Wednesday, March 17. The issue was fully subscribed in the initial hours of the opening due to great demand as the company is the First Gaming Company of India to get listed on the exchanges. 

As per the data available on the exchanges till 4:00 pm, the issue was collectively subscribed 3.35 times. The retail portion of the issue was booked 13.74 times, QIB section received bids 0.36 times and Non-Institutional section was booked 2.43 times.  

Ace investor Rakesh Jhunjhunwala-backed gaming firm launched their offer to raise Rs 582.91 crore and the issue was fully offer-for-sale by existing shareholders of the company. The company is bidding its shares at a price band of Rs 1100-1101 per equity share with a face value of Rs 4 per share for a total of 16.7 per cent stake in the company.  

Existing shareholders are the only source of the issue as the company has not issued any fresh shares for sale. The investors can make bid for a minimum of 13 shares and in multiples thereafter. The minimum amount for the offer stands at Rs 14,313. The total issue size of the offer is 5,294,392 equity shares.  

Prior to the IPO, the company raised Rs 262 crore from 43 anchor investors on March 16, a day before the bidding process. It attracted best in class investors across blue chip sovereign wealth funds, marquee FIIs (Foreign Institutional Investors) and top mutual funds.  

The issue will close on Friday, March 17 and the tentative date of listing of the firm is March 30, 2021. However, credit of shares in demat accounts of the investors will be done on March 26.  

Brokerage firm Motilal Oswal Financial Services liked the offer given its leadership in highly under-penetrated mobile gaming, wide product portfolio and strong relationship and network. 

“Nazara is expected to witness strong growth for next 2-3 years given its recent acquisitions and first mover advantage and the issue is first of its kind listing and has no peer comparison in India. We believe that the market would like to give premium valuation to emerging growth stories like mobile gaming. We recommend Subscribe”, said domestic brokerage firm Motilal Oswal in its IPO note before the issue opened. 


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