InvestorQ : Can you tell me about the response to the Nazara Technologies IPO in the previous week?
swati Bakhda made post

Can you tell me about the response to the Nazara Technologies IPO in the previous week?

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Sam Eswaran answered.
3 weeks ago
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The IPO of Rakesh Jhunjhunwala backed Nazara Technologies saw oversubscription to the tune of 175 times the shares on offer. This obviously makes it the second-most subscribed and sought-after IPO of the year 2021.Nazara Technologies was an offer for sale where the initial promoters were taking a partial exit from the company. It is the first pure gaming company in India entering the IPO market.

The Nazara Technologies IPO attracted bids worth more than Rs.55,000 crore, In terms of the specific segment oversubscription, the biggest oversubscription was visible in the non-institutional HNI segment. This segment saw oversubscription to the tune of 390 times largely on the back of funded applications. Retail portion was subscribed 75 times and institutional portion was subscribed 104 times. The retail quota in the IPO was only 10%.

Priced in the band of Rs.1,100-Rs 1,101 per share, the company is likely to have a starting market valuations of Rs.1,769 crore. Most analysts have been sceptical about the valuations but to be on the safer side they have been calling it a rare investment opportunity in the fast growing mobile gaming and e-sports firm. The valuations are not cheap at 12.6 times EV/sales, but the response looks like a response to the novelty and investor profile.

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