A day after making a blockbuster debut on the stock market, shares of Rakesh Jhunjhunwala-backed Nazara Technologies, a video game platform and e-sports firm, tumbled sharply by over nine per cent in morning trade.
The shares of the company opened lower at Rs 1,489 against the previous closing price of Rs 1,576.80 on the Bombay Stock Exchange (BSE). The stock fell as much as 9.19 per cent to hit a low o Rs 1,431.85 and its market cap slumped to Rs 4,654.26 crore.
As of 2 pm, the shares of Nazara Technologies were trading over 6 per cent lower at Rs 1,481.40 on the BSE.
On the National Stock Exchange, shares of Nazara Technologies hit a low of Rs 1,432 after opening lower at Rs 1,490 at today’s opening. Now, the stock is trading lower by over 7 per cent at 1,479.80.
It seems that the shares of the company tumbled today on both benchmark indices due to heavy profit-booking on elevated margins.
IMPRESSIVE LISTING
Shares of Nazara Technologies made an impressive listing on the bourses on Tuesday. The shares of the gaming firm listed at Rs 1,971 — a 79 per cent premium of the issue price of Rs 1,101 per share — on the BSE.
Meanwhile, the stock listed at nearly 81 per cent premium at Rs 1,990 on the NSE. The shares of Nazara Technologies fell roughly 20 per cent from the listing price at yesterday’s closing at Rs 1,592 on the BSE.
It may be noted that it is the first gaming company to be listed on the domestic stock exchanges.
NAZARA TECHNOLOGIES IPO
The company had got listed on the stock market on Tuesday after a successful Rs 583-crore initial public offering (IPO) that opened for subscription between March 17 and March 19.
The public issue of the gaming company, backed by renowned investor Rakesh Jhunjhulwala, received a solid response from investors as it was subscribed 176 times.
It was reported recently that the company’s shares were trading at a premium of 50 per cent on the grey market.
The portion of the IPO reserved for qualified institutional buyers (QIBs) was subscribed 103.77 times, while it was subscribed 389.89 times by non-institutional investors and 75.29 times by retail investors.
Read | Nazara Technologies IPO: How to check share allotment status
It may be noted that 10 per cent of the issue was reserved for retail investors, 75 per cent for QIBs and 15 per cent for HNIs or high net-worth individuals.
Ahead of its IPO launch, Nazara Technologies raised Rs 260 crore from anchor investors and many brokerages had recommended investors to subscribe to the issue, citing both for long term potential and the possibility of listing gains.
Nazara Technologies is a company that makes most of its money from e-sports and e-learning platforms for children. It may be noted that ace investor Rakesh Jhunjhunwala owns over 10 per cent stake in the company.
