Nazara Technologies share sale via the ongoing share sale via initial public offering (IPO) was subscribed 10.55 times on the second day of the issue, according to subscription data on the exchanges. The Rakesh Jhunjhunwala-backed gaming company's IPO was fully subscribed within hours of opening on Wednesday, March 17. Retail investors showed greater interest in the IPO as the portion reserved for them was subscribed 44.47 times on March 18 by 5:00 pm. The portion set aside for non-institutional buyers was subscribed 7.73 times, while the portion reserved for qualified institutional buyers was subscribed 0.72 times. (Also Read: India's First Gaming Firm's IPO Fully Subscribed Within Hours Of Opening )
Nazara Technologies is the country's first gaming company to get listed on the stock exchanges. The company is selling shares in the price band of Rs 1,100 - Rs 1,101 per share. Nazara Technologies' ₹ 582.91 crore IPO opened for subscription on March 17 and will close on Friday, March 19, remaining open for investors for a period of three days.
The company's IPO market lot size is 13 shares. This means that bids can be made for a minimum of one lot of 13 equity shares and in multiples, extending up to 13 lots. This translates into a minimum investment of Rs 14,313 per person. A retail-individual investor can apply for up to 13 lots, specifically 169 shares or ₹186,069.
Nazara Technologies was incorporated in 1999 and is now the leading mobile gaming firm in the country. The company operates in various segments including subscription-based business, eSports, gamified early learning, and real money gaming. The company's subscription business focuses on mobile internet users comprising mainly first-time mobile gamers.
What Analysts Say:
"The company has been reporting losses over the last 18 months, and hence, it has a negative P/E ratio. That said, the company is valued at ~13 times Enterprise Value /Sales based on FY20 data.
The company has been reporting losses due to high advertising & promotion expenses. This is expected to drive top-line growth for the company going forward. Further, the outlook for gaming space in India remains robust, improving the visibility for Nazara Technologies.
Given the company's market leadership status, strong topline growth, robust outlook, and positive sentiment due to marquee investors, investors who wish to take exposure to an under-penetrated Indian gaming and global gamified early learning market could consider investing in this issue," INDmoney said.