Mobile gaming company, Nazara Technologies is expected to see a bumper listing on March 30 despite high market volatility on the back of a successful business model, high growth trajectory, pioneer status in the gaming field and a backing from Rakesh Jhunjhunwala, experts feel.
Its shares traded at a massive 50-59 percent premium in the grey market during the weekend. Last week, the premium was 67-68 percent.
At a grey market premium of Rs 550-650 per share, the trading price comes to Rs 1,651-1,751 against the issue price of Rs 1,101, the IPO Watch, IPO Guru and IPO Central data showed.
"The company has been on a high growth trajectory for the past few years which is expected to continue going forward. We, therefore, believe that the grey market premium is justified by the high growth potential of the company, though at the current grey market levels, it is commanding a multiple of 5.5xFY23 EV/Sales which is not cheap by any means," Jyoti Roy, DVP- Equity Strategist at Angel Broking told Moneycontrol.