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Nazara Technologies sees a blockbuster listing – shares list at 81% premium

All eyes were on Nazara Technologies today, as it got listed on the stock exchange. The Indian gaming and sports media company saw its shares list at ₹1990 – a jump by 80.7%.

The shares were trading at ₹1819 at 10.08 am.

Nazara’s strong listing saw its first hint in the grey market premium – where it was trading at 71% of its issue price of ₹1101. However, the grey market is not an official measure of the market premium.

The company’s shares had been subscribed 175.43 times by the end of its last day of subscription. It received bids for 51.20 crore equity shares against the issue size of 29.20 lakh equity shares.

Nazara was the first pure play gaming company in India to head for the public markets, and had also garnered a lot of market interest as it is also backed by ace stock market expert Rakesh Jhunjhunwaala.

Nazara holds the licenced mobile gaming rights of popular cartoon characters like Chhota Bheem, Motu Patlu and Shikari Shambhu.

And it is the company’s stronghold in the booming gaming industry that has got a lot of attention from investors. According to a report by ICICI Direct, the gaming industry in India is currently valued at $ 1.54 billion and is expected to grow at a CAGR of 31% to $ 3.53 billion by 2023. And Nazara is well positioned to lead the growth.

The gaming company’s deep presence in India and abroad has also been working in its favour. In an earlier interview with Business Insider, Nazara’s chief executive officer Manish Agarwal had said that the company understood the Indian market and gaming mindset to develop content accordingly.

And analysts agree that this gives the company an advantage. “The company has an operating leverage advantage in gamified early learning on account of captive development of content being undertaken in India, while generating revenues inter alia from North America. Further, its leadership in eSports and sports simulation and geographical reach across India, Middle East, Africa and North America provide a strong foundation for growth,” said the ICICI Direct report.


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