Shares of mobile gaming firm Nazara Technologies made a strong but volatile market debut on Tuesday as it closed with a premium of over 44 per cent against its issue price of Rs 1,101.
The company, backed by ace investor Rakesh Jhunjhunwala, listed at Rs 1,971 on the BSE, thus showing a huge gain of 79.01 per cent over the issue price. It later jumped 84 per cent to hit an intra-day high of Rs 2,026.90.
However, the stock fell more than 22 per cent to a day’s low of Rs 1,576.80 from its high point as investors sought listing gains. Later, it closed at Rs 1,576.80, a gain of 43.21 per cent.
Similarly, on the NSE, it debuted at Rs 1,990, a rise of 80.74 per cent. It finally closed higher by 44.59 per cent at Rs 1,592. In terms of traded volume, 8.37 lakh shares were traded on the BSE and over 74.91 lakh units on the NSE during the day. At the end of the trading session, its market valuation stood at Rs 4,801.80 crore on the BSE.
Nazara Tech’s initial public offer was subscribed a whopping 175.46 times earlier this month. The company is popularly known for its games on World Cricket Championship, Chhota Bheem and Motu Patlu series. The Rs 583-crore share sale came in a range of Rs 1,100-1,101 per share.
Ahead of the issue, brokerages such as Motilal Oswal had asked investors to subscribe to the issue. The brokerage said in a report that the Indian mobile gaming market is expected to grow at 40 per cent CAGR over 2020-23.
