The initial public offering (IPO) of Nazara Technologies has been subscribed 4.01 times on the first day of the bidding. The offer has received bids for 1.17 crore equity shares against the IPO size of 29.20 lakh equity shares, as per the subscription data available.

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Retail investors have shown a strong response to the issue as their reserve portion has been subscribed 16.75 times, while that of non-institutional investors is subscribed 2.85 times.

The employees' portion is booked 2.28 times. The company has reserved Rs 2 crore worth of shares for its employees. The reserved portion for Qualified institutional buyers' has been subscribed 36 percent.

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

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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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

Motilal Oswal said it liked Nazara Technologies given its leadership in highly underpenetrated mobile gaming, wide product portfolio, and strong relationship and network.

“The issue is valued at 5.5x FY21 P/BV and 7.6x FY21 EV/Sales on an annualised and post-issue basis. The issue is a first of its kind listing and has no peer comparison in India. We believe that the market would like to give premium valuation to emerging growth stories like mobile gaming. We recommend subscribe,” Motilal Oswal said.

(Edited by : Abhishek Jha)

First Published:Mar 17, 2021 1:32 PM IST