Nazara’s IPO had seen 175 times more demand than the shares on offer, the second highest in 2021 after Mtar Tech. Investors had lapped up the shares in the IPO, enthused by the prospects of the mobile gaming and electronic sports industry.
Analysts are expecting the company to post annualised revenue growth of 35-40 per cent over FY20-FY23.
Nazara’s IPO consisted of a secondary share sale worth Rs 583 crore. At the IPO price of Rs 1,101, the company was valued at Rs 1,769 crore. After the first day’s trade, the company’s market cap has increased to Rs 4,848 crore.
"Nazara is well placed to leverage the opportunity that interactive mobile games, eSports content and gamified early learning apps offer," Motilal Oswal analysts had said earlier this month, according to Reuters.
Nazara’s backers include billionaire investor Rakesh Jhunjhunwala, whose stock picks are closely watched by local retail and institutional investors.
The company gets a bulk of its revenue from India and North America, but is also present in African and West Asian markets.
Its revenue jumped 46 per cent year-over-year to Rs 248 crore ($34 million) in FY20.
However, Nazara reported an annual loss of Rs 26 crore compared with a profit of Rs 6.7 crore a year earlier, hurt by costs related to a string of acquisitions, higher licensing expenses at its e-sports business and more spending on advertising.
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