The first gaming firm to make its way to the Indian bourses in the grey market commanded a premium of 71% in comparison to the issue price of Rs.1101, indicating a decent listing.
The issue of Nazara Technologies that ran between March 17 and March 19 did not see participation by Rakesh Jhunjhunwala in the OFS who has a 10.82 percent stake in the firm.
Elara Capital that is bullish on the prospects of Nazara Technologies said the company has the first-mover advantage in case of eSports that is seen to witness an increased interest in the near term. At the same time, it said that concerns relating to freemium games including World Cricket Championship (WCC) remain owing to non-availability of monetisation opportunity in the country. Also, the firm does not have its presence in the real money gaming within gaming that offers an immense untapped opportunity.
Hem Securities' Astha Jain who said the issue to be aggressively priced, nevertheless valuations are just right given the huge opportunity the company has, and the growth it may see going ahead. Further she expects a strong listing for the firm and believes it to be a long term bet.