The Rs 583-crore IPO of Nazara Technologies was subscribed 176 times by investors. This is the first gaming company that has been listed on the stock exchanges.
Nazara Technologies shares made a strong debut on the stock exchanges on Tuesday. Rakesh Jhunjhunwala backed- Nazara Technologies stock began trading at Rs 1,971 per share, up Rs 870 or 79.02 per cent from the IPO price of Rs 1,101 per share. The debutant stock had a market capitalization of Rs 6,002.25 crore on the listing. The Rs 583-crore IPO of Nazara Technologies was subscribed 176 times by investors. This is the first gaming company that has been listed on the stock exchanges. The company, backed by ace investor Rakesh Jhunjhunwala, is popularly known for its games on the World Cricket Championship, Chhota Bheem and Motu Patlu series.
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In January this year, WestBridge Ventures II Investment Holdings, a fund managed by WestBridge Capital, exited from Nazara by selling shares worth over Rs 500 crore to Plutus Wealth Management LLP and its associates. Besides, WestBridge sold shares to IIFL Special Opportunities Fund and Rakesh Jhunjhunwala, who had invested Rs 327 crore and Rs 182 crore, respectively, in Nazara during 2017. Nazara Technologies revenue has grown from Rs 172 crore in the financial year 2018 to Rs 247.5 crore in the previous financial year. However, net profit has gone from Rs 36.7 crore to Rs 26.6 crore during the same period.
Four out of five research and brokerage firms had given a ‘subscribe’ rating to the issue. Nazara Technologies Limited is the leading India based diversified gaming and sports media platform with presence in India and across emerging and developed global markets, and offerings across the interactive gaming, eSports and gamified early learning ecosystems including World Cricket Championship (WCC) and CarromClash in mobile games, Kiddopia in gamified early learning, Nodwin and Sportskeeda in eSports and eSports media, and Halaplay and Qunami in skill-based, fantasy and trivia games.
The company believes the current position of leadership in India across a diversified set of offerings provides a strong foundation for continued growth. Its successful business model and established presence in India, a market with economic, technical and cultural complexities, has given it a competitive advantage, according to analysts at BP Equities Pvt Ltd. They also added that the company intends to continue to be present and expand its presence in emerging markets by capitalising on its first-mover advantage in these markets and leveraging its existing network of partnerships across the local ecosystem.