Rakesh JhunJhunwala-backed ‘Nazara Technologies’ IPO subscribed 4 times on first day of subscription

The initial public offer of gaming company Nazara Technologies Limited was subscribed four times on the first day of subscription as retail investors grabbed on to the country’s first gaming IPO.

As the Mumbai-based company kicked off its IPO on Wednesday, the offer of 5.29 million shares was being sold in the price band of Rs 1,100 to Rs 1,101 per equity share. The issue received bids for 1,17,15,171 shares against 29,20,997 shares on offer, as per an update on the NSE.

Backed by ace investor Rakesh Jhunjhunwala, Nazara Technologies on Tuesday raised a little over Rs 261 crore from anchor investors.

The company is popularly known for its games on World Cricket Championship, Chhota Bheem, and Motu Patlu series. At the upper end of the price band, the IPO is expected to fetch Rs 583 crore.

Explaining the rationale behind the IPO, the company said that listing of equity shares will improve its brand name and offer liquidity to the existing shareholders. The listing will also provide a public market for equity shares in India. The equity shares are proposed to be listed on BSE and NSE. ICICI Securities, IIFL Securities, Jefferies India, and Nomura Financial Advisory and Securities (India) are the managers of the offer.

“The gaming industry is set to witness over 30 percent CAGR (compound annual growth rate) over 2020-2023 (estimated) on the back of high mobile penetration, increasing internet penetration, and the increasing number of gamers. Nazara has a widespread presence both in terms of geography and product portfolio which offers strong growth visibility,” said Aditya Birla Capital analysts.

Nazara Technologies has become India’s first pure-play gaming technology company to make its IPO debut on the Indian public markets.