Nazara Technologies succumbs to profit booking after bumper listing; shares hit 20% lower circuit

After making a strong debut on the stock exchanges, shares of Rakesh Jhunjhunwala backed gaming firm Nazara Technologies declined 20 percent from the listing price to hit a lower circuit.

The stock of Nazara Technologies got listed at a bumper premium of 80.74 percent to the issue price. It quoted Rs 1,990 at the opening on NSE as against the issue price of Rs 1,101. On BSE, the shares were listed with 79.02 percent premium at Rs 1,971.

Nazara Technologies makes a strong debut; lists with 80.7% premium at Rs 1,990 per share on NSE

The stock made a high of Rs 2,024.90 apiece, gaining almost 84 percent over the issue price. However, the stock soon succumbed to selling pressure on account of profit booking and hit 20 percent lower circuit to Rs 1,592.00 on the NSE. The stock is still up over 44 percent from the listing price.

The shares ended at 20 percent lower circuit Tuesday.

Analysts expect profit booking in the stock post-listing, given relatively expensive valuations. But, they remain positive on the stock for long term on the company’s growth prospects.

Nazara Technologies is a leading diversified gaming and sports media platform with a presence in India and across emerging and developed global markets such as Africa and North America.

Its offerings include interactive gaming, eSports and gamified early learning ecosystems including World Cricket Championship (WCC) and CarromClash in mobile games, Kiddopia, Nodwin and Sportskeeda, Halaplay and Qunami.