The biggest USP of Nazara Technologies was that of Rakesh Jhunjhunwala holding 10.82% stake in the company and that was enough to ensure a great response to the IPO and consequently a fantastic listing.
The stock made a debut on the BSE today at Rs.1971 and at Rs.1990 on the NSE v/s IPO price of Rs.1101, a premium of 80%.
The stock had got subscribed 176 times with HNIs bidding 390 times their quota limit, QIBs was subscribed 104 times while retail investors was at 75 times.
In our New Issue Analysis, we had concluded, “Bullish prospects of gaming industry, scalable profitable business model and scarcity premium may lead to a successful listing. Hence, those with listing gains in mind may apply. However, unjustified wide variation in offer pricing raises uncomfortable questions, along with high competition intensity may make it risky for long term portfolio holding.”