What should be your listing strategy as Nazara Technologies trades 43.22% higher

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Ace investor Rakesh Jhunjhunwala-backed Nazara Technologies made a bumper listing on the stock exchanges on Tuesday. Shares of the gaming firm at Rs 1,990 per share on the National Stock Exchange, implying a premium of 80.74% from the IPO price of Rs 1,101 per share. On the BSE, the gaming firm opened at Rs 1,971, a markup of 79.02%.

Led by profit booking the share was trading near its day’s low. In noon trades, the shares of India’s first gaming company slipped from its opening price to Rs 1,592 quoting at a premium of 44.59% over its issue price. On an intraday basis, the stock made a high of Rs 2,024.90 and a low of Rs 1,592, on the NSE. So, what should be the listing strategy now as the premium has come down from 80.74% to 44.59%.

Independent market expert Ambareesh Baliga is of the opinion despite having a stellar listing however the prices came down taking cues from recent listings and allottees were in a hurry to book profits. It also indicates that going ahead IPOs may not get huge oversubscription from HNIs as they faced losses in the recent listings. “As A stock with marquee investors is expected to hold on to listing gains. Investors who got the allotment can hold at current levels as the stock can revisit Rs 1,950-2,000 levels once the selling from HNIs settles out,” added Baliga.

On the other hand, Saurabh Joshi, Research Analyst at Marwadi Shares & Finance said that “investors should consider booking profit on Nazara Technologies. At an issue price of Rs.1101 per share, the company commands a valuation of 12.80 times EV/Sales based on FY 20 sales. The listing gains in Nazara Technologies are pretty good and one needs to consider booking gains keeping in mind the overall sentiments of the primary markets and stretched valuations due to strong listing.”

Nazara Technologies is a leading India-based diversified gaming and sports media platform with a presence in India and globally. It has offerings across interactive gaming, eSports and gamified early learning ecosystems. The company owns some of the most recognizable IP, including WCC & CarromClash in mobile games, Kiddopia in gamified early learning, Nodwin & Sportskeeda in eSports and eSports media, and Halaplay Technologies Halaplay and Qunami in skill-based, fantasy & trivia games. Nazara was among the first entrants in India, in eSports through Nodwin and cricket simulation through Nextwave.

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