Shares of Nazara Technologies Limited listed on the bourses and had a great start with the discovered price being Rs 1,971 on BSE and Rs 1,990 on NSE. They closed locked at the lower circuit of the day of Rs 1,576.80 on BSE and Rs 1,592 on NSE. Gains registered at close of day were a decent 43.22% on day one.

Nazara had tapped the capital markets with its offer for sale of 52,94,392 equity shares. The issue was oversubscribed 175.46 times. QIB portion was subscribed 103.77 times, HNI portion was subscribed 389.89 times, Retail portion was subscribed 75.29 times and Employee quota was subscribed 7.55 times. There were 23.34 lac applications and on basis of lots, Retail portion was subscribed 57.55 times.

The company had earlier completed allocation to anchor investors. The company allotted 23,73,395 equity shares at Rs 1,101 to 25 anchor investors comprising of 43 entities. The highest allocation of 1,99,823 shares or 8.4% of the anchor allocation was made to Government of Singapore. This was followed by 13 anchor investors who were allotted an identical 1,19,899 shares or 5.1% of the anchor book.

The issue had opened on Wednesday the 17th of March and closed on Friday the 19th of March 2021. The price band for a Rs 4 paid up equity share is Rs 1,100 – 1,101.

The discovered price on BSE was Rs 1,971, high of the day was Rs 2,026.90, low was the lower circuit at Rs 1,576.80 and this was also the close of the day. Shares gained Rs 475.80 or 43.22%. On NSE the discovered price was Rs 1,990, high was Rs 2,024.90, low was the lower circuit of Rs 1,592 and the close was also the same. Share gained Rs 491 or 44.60%.

Traded volume on the two exchanges was 83.28 lac shares which was 1.57 times the IPO size of 52.94 lac shares and 2.85 times the non-anchor portion of 29.20 lac shares. Delivery volume was 30.37 lac shares which was 36.47% of traded volume. It was 57.37% of the IPO size and 103.99% of the non-anchor portion. Very clearly some of the selling shareholders who did not exit totally through the IPO and still had shares which were not locked-in have cashed out. Market grapevine suggests that the sales are from the holding of IIFL Special Opportunities Fund.

Weighted average of the day’s trade was 1,704.73 on BSE and Rs 1,766.58 on NSE. Very clearly barring the opening of the day and the high immediately thereafter, the share was under pressure and hence the closing price is substantially lower than the weighted average. The cost of funding for the leveraged HNI was in the region of Rs 615-625. This suggests that all those who sold before the stock hit the lower circuit have made some money.

With 30 lac shares changing hands through delivery, no names were reported either on the buy side or the sell side. This suggests that people who have bought on day one, is small size tickets not coming under the ambit of reporting. With no hangover of existing investors from the IPO other than the pre-IPO shareholders who still have some free or non-lock in shares, one would see wild movement in the counter as the share has closed below average. The new buyers yesterday would have bought around the average and that is roughly 11% higher than the close. Interesting to see how the share would move in the coming days.