The newly launched IPO of Rakesh Jhunjhunwala backed Indian gaming and sports startup, Nazara Technologies was subscribed 175.46 times. The IPO made its debut with a 3-day offering from 17th March to 19th March.
According to data from NSE and BSE, the company prepared only 29,20,997 to offer, but the issue received overall bids for 512,518,134 shares, a staggering 175.74 times oversubscription.
Nazara’s presence in esports & gaming sector
Nazara Technologies owns a 50% stake in Indian esports service provider Nodwin Gaming, which takes care of IPs such as ESL India, DreamHack India & ESWC’s India operations.
Nazara IPO issue
Further data suggest that in the retail category the issue got bids for 39,709,527 shares against 5,27,421 shares on offer, a 75.29 times oversubscription. While in the Qualified Institutional Buyer (QIB) category and Non-Institutional Investor (NII) category, it was oversubscribed by 103.77 times and 389.89 times respectively.
The portion for employees was subscribed 7.55 times. The IPO received bids for 512.52 million equity shares against the size of 2.92 million equity shares (over 175 times).
Nazara Technologies is the first mobile gaming company in India to offer its IPO. The company aims to gain Rs 582.91 cr from the issue and has set the price band for the public issue at ₹1,100-1,101 per share.
Incorporated in 1999, Nazara has grown significantly and has become India’s leading gaming and sports company. The company enjoys leadership in Esports with an 80 percent market share and has a network of over 100 Mn players in India.
The company also posted a record revenue of INR 264 Cr in FY 2020, growing from INR 164 Cr in 2018-19. Nazara last paid a dividend of 1510% for FY18 and with Rakesh Jhunjhunwala as an investor, the hype around the IPO was of-the-roof.