About The IPO
The initial public offering (IPO) of Nazara Technologies will open for subscription on March 17 and close on March 19. The company has fixed a price band of ₹1,000–1,010 per share for its ₹582–583 crore IPO. The company consists of an offer for sale (OFS) of 5,294,392 equity shares. Investors can bid for a minimum of 13 shares and in multiples thereof.
The firm has reserved shares worth ₹2 crore for employee registration and offering them a discount of ₹110 per share. In the remaining portion, 75% is reserved for Qualified Institutional Buyers (QIBs), 15% for High Net-Worth Individuals (HNIs) and 10% for retail investors.
As per news reports, shares of the company have been surging in the unofficial i.e., the grey market, with the premium over the IPO price soaring as much as ₹840–850 per share.
About Nazara Technologies
Nazara Technologies Ltd was founded by gamer Nitish Mittersain in 2000, but it got derailed during the dot-com bust. The gaming technology company is backed by billionaire Rakesh Jhunjhunwala and Plutus Wealth Management, IIFL Special Opportunities Fund, Turtle Entertainment are its major investors.
The firm owns some of the most recognizable IP (Intellectual Property) and the list includes WCC and CarromClash in mobile games, Kiddopia in gamified early learning, Nodwin and Sportskeed in eSports and eSports media and Halaplay Technologies Private Limited (Halaplay) and Qunami in skill-based, fantasy and trivia games.
Bullish Sentiment
The sentiment has remained bullish on Nazara IPO as many investors are expecting it to be the showstopper of the season and have a record-breaking issue. Why? Because a) The company is backed by the big bull Rakesh JhunJhunwala and b) The company’s niche business model and expectations of high level growth.
Other things that may work in the favour of the company is the anticipation of the growing popularity of the gaming industry, especially amid the pandemic. According to Statista, the market value of India’s gaming sector is expected to grow more than ₹25,000 crore by 2024 and the number of people employed in the sector is anticipated to be over 40,000. Also, the big ban on Chinese apps that has helped create opportunities for the local developers in the industry.
Will this IPO live up to the expectations of the investors and break records and also stand as a good investment for the long-term?
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