Rakesh Jhunjhunwala-backed mobile gaming company Nazara Technologies had a stellar debut as the share opened with a massive 80.74 percent premium on March 30.
The impressive start was expected considering that the IPO was subscribed 175.46 times, the company's strong revenue growth trajectory with a successful business model, rising smartphone penetration with more youngsters taking to gaming and a strong portfolio of premium intellectual properties. Analysts had expected the listing premium of 50-67 percent.
The stock started off the first trade on the National Stock Exchange at Rs 1,990, rising Rs 889 compared to the issue price of Rs 1,101. On the BSE, it began the trade with a 79.02 percent premium at Rs 1,971.
It was trading at Rs 1,913.30 on the National Stock Exchange, rising 73.8 percent with a volume of 18.09 lakh equity shares, while on the BSE, it traded at Rs 1,917.75, up 74.18 percent with a volume of 1.53 lakh equity shares, at 10:02 hours IST.
The company raised Rs 583 crore through its public issue during March 17-19, which was an offer for sale by shareholders.
Nazara Technologies is a leading India-based diversified gaming and sports media platform with a big presence in the domestic market and across emerging and developed markets, offering interactive gaming, eSports and gamified early learning ecosystems.
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The company owns some of the most recognisable IP, including WCC and CarromClash in mobile games, Kiddopia in gamified early learning, Nodwin and Sportskeeda in eSports and eSports media, and Halaplay Technologies and Qunami in skill-based, fantasy and trivia games.
It has market-first positions in India across sports simulation and eSports. The eSports content business for Nazara grew by 60 percent in FY20 from FY19 and has grown by 9x times in the last three financial years.
After reporting a 1.4 percent decline in revenue in FY19, the company posted strong revenue growth of 45.9 percent in FY20 to Rs 247.5 crore The company had already reported a revenue of Rs 200 crore for the six months period ended September 2020. It had posted a loss since FY20 after it increased spending significantly on advertising and promotion.