Nazara Tech IPO: Grey market premium surges, raises hopes of strong listing

Rakesh Jhunjhunwala-backed Nazara Technologies shares will make stock market debut on March 30, 2021. India-based sports media platform will be the first gaming company to be listed on the stock exchanges. Ahead of listing, the shares of Jhunjhunwala-backed gaming company were trading at strong premium in grey market, indicating a strong listing at domestic bourses. The stock was quoting at Rs 1,791 per share in the grey market, implying a grey market premium of Rs 690 or 62.67 per cent against the issue price of Rs 1,101.

The allocation of shares Nazara Technologies after its public issue was finalised on March 25. Investors who bid for the company's IPO can check application status on Link Intime website as well as BSE.

The Rs 583 crore IPO of Nazara Technologies, the developer of the world's most popular mobile cricket game, was oversubscribed 175 times. The price band for the issue, which closed on March 19, was fixed at Rs 1,100-01. Investors bid for a minimum of 13 equity shares and in multiples of 13 thereafter, which means they invested minimum of Rs 14,300 per lot.

The IPO was an offer for sale (OFS) of up to 5,294,392 equity shares by the promoters and existing shareholders. The promoters currently hold 22.88 per cent in the company. Post-IPO, the promoter holding will come down to 20.61 per cent. Among major shareholders, Mitter Infotech LLP holds 20.57 per cent stake in the company, followed by Arpit Khandelwal (12.51 per cent) and Rakesh Jhunjhunwala (11.38 per cent), as per the RHP filed on January 14, 2021 with the market regulator Sebi. While Mitter Infotech LLP will be selling 6,91,900 equity shares, Rakesh Jhunjhunwala and Arpit Khandelwal is not participating in the OFS.

Among other investors, IIFL Special Opportunities Fund will sell 12,67,435 equity shares, IIFL Special Opportunities Fund-Series 4 10,36,286 equity shares, IIFL Special Opportunities Fund-Series 5 8,73,989 equity shares, IIFL Special Opportunities Fund-Series 2 8,16,804 equity shares and IIFL Special Opportunities Fund-Series 3 will be selling 3,93,349 equity shares.

Good Game Investment Trust will sell 1,50,000 equity shares, Seedfund 2 International 25,000, Porush Jain 23,725, Azimuth Investments 14,959 and Seedfund 2 India will sell 945 shares.

Rakesh Jhunjhunwala-backed Nazara Technologies IPO sees bumper response, subscribed 175 times on final day

Rakesh Jhunjhunwala-backed Rs 582 crore Nazara IPO opens on March 17; issue price at Rs 1,101