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Home / Markets / Ipo /  Nazara Technologies IPO share allotment: How to check your application status

The allocation of shares Nazara Technologies after its public issue has been finalised today. The IPO of Nazara Technologies, the maker of the world's most popular mobile cricket game, was concluded on Friday, becoming the first Indian gaming app to do so. Link Intime India Private is the registrar of the IPO. Once the share allocation is finalised, application status can be check on its Link Intime website.

The 583 crore IPO was oversubscribed 175 times. The company is expected to list on BSE and NSE on March 30.

In the grey market, market observers say that shares are trading at a premium of 750.

Investors can also check the allotment status on the BSE website by selecting the issue and then entering the PAN number and application number.

Nazara Technologies, which makes most of its money from its e-sports and children's e-learning platforms, hopes to cash in on the success of its World Cricket Championship (WCC) app, with India's mobile gaming industry expected to nearly treble in value over the next two years, according to a report by CLSA.

Cheap data, improved 4G networks and rising smartphone penetration have helped the industry grow to $1.2 billion in India, CLSA said, with coronavirus lockdowns driving the expansion.

Ace investor Rakesh Jhunjhunwala owns over 10% stake in the company. The initial public offer was in a price range of 1,100-1,101 per share. The portion reserved for qualified institutional buyers (QIBs) was subscribed 103.77 times, non institutional investors 389.89 times and retail individual investors (RIIs) 75.29 times. 10% of the issue is reserved for retail investors, 75% for qualified institutional buyers (QIB) and 15% for HNIs.

Ahead of the IPO, Nazara Technologies had mopped up 260 crore from anchor investors.

Many brokerages had recommended subscribe to the issue both for long term potential and possibility of listing gains.

"Over FY18-20, Nazara’s revenue grew at 20% CAGR, while in 9MFY21 it achieved 81% of FY20 revenue. EBITDA however went to negative in FY20, as the company reduced its dependence on high margin telco subscription segment to 21% of revenue (89% in FY18) in order to diversify and expand in fast emerging segments. In 9MFY21 EBITDA has started recovering and would pick up going ahead as Nazara attains economies of scale. Balance sheet is lean with minimal debt and working capital requirements. Return ratios however is negative as its loss making," said domestic brokerage Motilal Oswal, which has a subscribe rating on the issue.

"We like Nazara given its leadership in highly under-penetrated mobile gaming, wide product portfolio and strong relationship and network. Nazara is expected to witness strong growth for 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. The issue is first of its kind listing and has no peer comparison in India. We believe that the market would like to give premium valuation to emerging growth stories like mobile gaming," the brokerage said. (With Agency Inputs)

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