The initial public offering (IPO) of Nazara Technologies has been subscribed 10.55 times on March 18 (Thursday), the second day of the bidding. The offer has received bids for 3.08 crore shares against the IPO size of 29.20 lakh equity shares, as per subscription data.

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Retail investors have shown a strong response to the issue as their reserve portion has been subscribed 44.47 times, while that of non-institutional investors is subscribed 7.73 times.

The employees' portion is booked 5.33 times. The company has reserved shares worth Rs 2 crore for its employees. The reserved portion for Qualified institutional buyers' has been subscribed 72 percent as of 4:40 pm.

The company aims to raise Rs 583 crore through its public offer, which closes on March 19 (Friday).

Nazara Technologies, which is backed by marquee investors Rakesh Jhunjhunwala and IIFL, had raised Rs 262 crore from anchor investors on March 16.

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Rakesh Jhunjhunwala-backed Nazara Technologies IPO opens: Key things to know before investing

The company is the leading India-based diversified gaming and sports media platform with a presence in India and across emerging and developed global markets such as Africa and North America.

The company has fixed the price band for the issue at Rs 1,100-1,101 per equity share.

The offer includes an offer for sale of up to 6,91,900 equity shares by the promoters; 43,87,863 equity shares by the investor selling shareholders and 2,14,629 equity shares by the other selling shareholders.

Also Read: Nazara Technologies IPO opens today: Brokerages recommend subscribing to the issue

GEPL Capital recommended a Subscribe rating to the issue saying, “The offer is priced at a Price/Sales multiple of ~7.95x on the annualized sales of H1FY21. This may seem aggressive but would be justified in terms of the growth prospects in the medium to long term.”

Over the last three fiscals, the company has changed its gears and entered newer business segments with high growth potential through the inorganic route. The newer segments with high growth potential include – eSports, Gaming - World Cup Cricket, HalaPlay – Fantasy Sports.

“As the synergies and growth from these investments kick in, the margin profile and consequently return ratios will return back to a path of steady growth,” GEPL Capital added.

First Published:Mar 18, 2021 11:57 AM IST