Nazara created history when it became the first Indian online gaming company that started its IPO. Analysts supported the Nazara IPO(Initial Public Offering). The online gaming firm received overwhelming support from the investors, overall, the company got bids for 51.2 crore equity shares against the issue size of 29.2 lakh equity shares. IPO allotment basis will take place on March 24, 2021, whereas the shares will be listed on March 30, 2021. On the last day of subscription, the company’s IPO was subscribed 175 times. company has captured 80% gaming market in India.
Nazara IPO Status
Nazara started the IPO of ₹581 crores, backed by known investor Rakesh Jhunjhunwala. It had a record-breaking subscription demand on the last day. it was subscribed by 175.46 times. Investors and brokerage firms are talking in support of Nazara IPO from the beginning. Exchange subscription data shows that it received bids for 512.52 million equity shares against the IPO size of 2.92 million equity shares, the subscription data available on exchanges showed.
The retail part of the IPO was subscribed by 75.29 times. Non-institutional investors part had an overwhelming subscription of 389.89 times, whereas the portions for employees and qualified institutional buyers were subscribed 7.55 times and 103.77 times respectively.
In the history of IPOs, this is the third-highest subscription of an IPO with a value of more than Rs 200 crore. Hyderabad-based MTAR Technologies holds the record of 200 times subscription when it started the IPO last month. Mrs. Bectors Food IPO was subscribed by 199 times last year. All the major brokerage firms gave thumbs up to Nazara IPO due to the immense growth of online gaming recently.
Motilal Oswal Financial Services’ View About Nazara’s Future Growth
“We like Nazara 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 the next two-three years given its recent acquisitions and first-mover advantage,” Motilal Oswal said.
the company set the share price in the range of Rs 1100-1101 per share.
Motilal Oswal Broker further added:
“The issue is valued at 5.5 times FY21 price to book value and 7.6 times FY21 enterprise value to sales on an annualized and post-issue basis. The issue is a first of its kind listing and has no peer comparison in India.”
Rakesh Jhunjhunwala holds the 11.38% stakes of Nazara Technologies. Experts consider him the market guru. Jhunjhunwala is one of the major reasons for the popularity of Nazara IPO. Nazara Technologies recently invested $50 million in its expansion to other areas of esports.
If we talk about the revenue of Nazara in the last financial year, it recorded Rs 262 crore in FY 2020 with a total loss of Rs 10 crore. in FY2019, it had total revenue of Rs 186 crore with a net profit of Rs 6.7 crore,