Rakesh Jhunjhunwala-backed Nazara Technologies Ltd initial public offering (IPO) was subscribed more than 10.55 times on the second day of bidding on Thursday.
India’s first gaming IPO received bids for 30.81 million shares against the offer size of 2.92 million equity, data available on exchanges showed.
The retail portion was subscribed nearly 44.47 times with bids for 23.45 million shares against the offer size of 0.53 million equity shares. The portion for non-institutional investors saw a subscription of 7.73 times, while the portions for employees and qualified institutional buyers were subscribed 5.33 times and 0.72 times respectively.
“We like Nazara given its leadership in the highly under-penetrated mobile gaming, wide product portfolio and strong relationship and network. Nazara is expected to witness strong growth for the next 2-3 years given its recent acquisitions and first mover advantage. The issue is valued at 5.5x FY21 P/BV and 7.6x FY21 EV/sales on an annualized and post issue basis," said Motilal Oswal in a note to its investors.
The IPO plans to raise nearly ₹583 crore with a price band of ₹1,100-1,101 a share. The issue will close on Friday.
On the other hand, despite the recent high interest in IPOs, the ₹1,175-crore IPO of Kalyan Jewellers India Ltd was subscribed only 2.64 times on the final day of bidding. The issue received bids for 249.57 million equity shares against the offer size of 94.61 million shares, according to data on the exchanges.
The retail portion was subscribed 2.85 times. The portion for non-institutional investors saw subscription of 1.93 times, while that for qualified institutional buyers saw subscription of 1.93 times.
Meanwhile, the Suryoday Small Finance Bank IPO was subscribed 1.01 times on the second day of bidding with bids of 13.68 million shares against the 13.52 million offered. The retail portion was subscribed nearly 2 times while the non institutional portion saw a subscription of 20%. Qualified institutional investors are yet to start bidding.
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