Nazara Technologies IPO Review: Public issue opens today; experts give SUBSCRIBE tag for this much of listing gains

Nazara Technologies IPO Review: The Nazara Technologies IPO (Initial Public Offer) has become open for subscription from today and the public issue of the leading mobile game company in India will remain open till 19th March 2021. Nazara IPO Price band has been fixed at Rs 1100 to Rs 1101 and the lot size is of 13 shares. One can bid for a minimum 1 lot during the Nazara Technologies IPO, while the maximum lots allowed for a single bidder is 13. Hence, one can bid for the Nazara Technologies IPO with a minimum investment of Rs 14,313 while the maximum investment cap in the Nazara Technologies IPO is Rs 1,86,069.

Speaking on the Nazara Technologies IPO review Jyoti Roy, Deputy Vice President — Equity Strategist at Angel Broking Ltd said, "Nazara Technologies Ltd. is the leading India based diversified gaming and sports media platform with presence in India and across emerging and developed global markets such as Africa and North America, and offerings across the interactive gaming, eSports and gamified early learning ecosystems including World Cricket Championship (WCC) and CarromClash in mobile games, Kiddopia in gamified early learning, Nodwin and Sportskeeda in eSports and eSports media, Halaplay and Qunami in skill-based, fantasy and trivia games."

Roy of Angel Broking went on to add that Nazara Technologies is present in the fast growing segment of interactive gaming, eSports and gamified early learning solutions. After posting a degrowth of 1.4 per cent in FY2019 the company has posted strong revenue growth of 45.9 per cent in FY2020 to Rs 247.5 crore. The company has already posted a revenue of Rs 200 crore in H1FY2021. The company has been reporting losses as they have increased their spending significantly on advertising & promotion from FY2020 onwards, which will help drive strong topline growth for the company. Advertising & promotion expenses which accounted for 16 per cent of the company's revenues in FY2019 has increased sharply to 53.7 per cent of revenues in FY2020 and 59.7 per cent of revenues in 6MFY2021. At current levels the stock is trading at EV/Sales of 11.6xFY20 revenues and we recommend a "SUBSCRIBE" rating to the IPO given strong growth potential for the company considering the vast potential offered by the gaming industry."

WATCH | Click on Zee Business Live TV Streaming Below:

Nazara Technologies IPO Premium

On Nazara Technologies IPO premium that one can expect on the listing date, Saurabh Jain, AVP — Research at SMC said, "Nazara Technologies IPO is slightly over priced and hence I am expecting heavy profit-booking post listing date or may be even on the listing date itself. So, one can subscribe to the Nazara Technologies IPO only for the listing gains."

Asked about the listing gain one can expect from the Nazara Technologies IPO, Jain said, "Nazara Technologies IPO listing can be expected at around Rs 1500, which is huge if we look at the Nazara Technologies IPO price band of Rs 1100 to Rs 1101."