Nazara Technologies IPO subscribed 4.01 times. The public issue subscribed 16.75 times in the retail category, 0.36 times in QIB, and 2.85 times in the NII category by Mar 17, 2021 5 pm. 

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Rakesh Jhunjhunwala, known as the Big Bull of the market is one of the ace investors who is confident about the growth of this company. He himself has invested in this company and believes that the future of Nazara Technologies will be extremely Bright. Also, Rakesh Jhunjhunwala owns Delta Corp also in the gaming space.

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Valuation of Nazara Technologies:

Nazara Technologies may trade at an even higher multiple vs expectations, as:

1)     it is a pure-play digital company offering potential of 30% CAGR as per our estimates
2)     scarcity premium with almost no traditional company showing capability to grow at this pace in the medium term

Global gaming and eSports companies are trading at 3.3x one-year forward EV/sales despite much lower growth rates than in India; given Nazara Technologies is India’s gaming play with higher growth rates, it should command a premium valuation on EV/sales.