Nazara Technologies IPO Review today: Zee Business Managing Editor Anil Singhvi said that Nazara Technologies is a unique business and hence the demand for the IPO will surely remain high. In his Nazara Technologies IPO Review today, the Market Guru said investors should invest in the issue IPO for big listing gains. In short a profitable outing for investors.

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Nazara Technologies IPO review: Key reasons to invest 

1)      Gaming Business is growing strongly and it is extremely popular among the youth.

2)      Management team has good experience of over 20 years in this business

3)      Inorganic growth of the company is excellent

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Nazara Technologies management is known to acquire good businesses and merge them with their own company. Singhvi said apart from acquisition, it also takes the management of that company itself on board, which means they do complete integration. This helps Nazara Technologies to get the expertise of the company acquired and this can be used to grow further. Singhvi said that Nazara Technologies has followed this practise with all the companies it has acquired.

Singhvi says that Nazara Technologies is a Zero Debt company. Also, Big Bull Rakesh Jhunjhunwala holds 11% stake in the company. Many other good investors hold a stake in this company.

As far as competition or key risks for Nazara Technologies are concerned, Singhvi highlights that competition in this sector is extremely intense. New ideas can lead to disruption in this industry. Dream 11 and other gaming portals, can create competition going forward. It is difficult to predict what's going to happen going forward.

Singhvi said, for Nazara Technologies IPO bidders, the focus should only be on Big listing gains and not to hold long term gains. After listing gains, long term stop-loss will be decided. There is immense risk when investing for the long term in this company. Singhvi said that there is a good possibility that the company may grow further and can do better by acquiring good companies in similar fields. Management has done this previously looking at the history says Singhvi.

Singhvi said there is no assurance regarding Nazara Technologies profitability. There is no slow and steady growth in revenue and profit like other growing companies, specifically profit, says Singhvi.