The initial public offering of Nazara Technologies, which is backed by marquee investors Rakesh Jhunjhunwala and IIFL, has seen a subscription 4.01 times on the first day of bidding. The issue will be open till March 19.
The offer has received bids for 1.17 crore equity shares against the IPO size of 29.20 lakh equity shares, the subscription data available on exchanges showed.
Retail investors have put in 16.75 times more bids than the portion reserved for them. The portion set aside for non-institutional investors is subscribed 2.85 times and that of employees is booked 2.28 times. The company has reserved Rs 2 crore worth of shares for its employees.
Qualified institutional buyers' reserved portion was subscribed 36 percent.
Nazara Technologies is planning to raise around Rs 581 crore through public issue, of which it has already garnered Rs 261.31 crore via anchor book. Several marquee investors, including Goldman Sachs India, Government of Singapore, Aberdeen Standard Asia Focus, Fidelity Funds, Abu Dhabi Investment Authority, Nomura, Hornbill Orchid India Fund and Steadview Capital Mauritius, invested in the mobile gaming company through anchor book route.
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It is fully an offer for sale issue by existing shareholders. The price band for the offer has been fixed at Rs 1,100-1,101 per equity share.
Incorporated in December 1999, Nazara Technologies is a leading gaming & sports media platform with presence in India and global markets such as Africa and North America. The company offers a range of diversified gaming products across interactive gaming, eSports and gamified early learning (learning through games for children aged between 2-6 years).
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"At the upper price band of Rs 1,101, NTL is available at EV/Sales of 8.5x based on H1FY21 (annualized numbers) which is on the higher side. But this premium valuation is supported by the high scalability of new digital business," Geojit Financial Services said.
The company will also enjoy limited competition from domestic players and strong backing from a fast-growing Indian gaming market, added the brokerage which assigned a 'subscribe' rating for the issue on a short to medium-term basis.
Also read our in-house research team's take on Nazara IPO
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