By Aditya Raghunath
Investing.com -- An indication of volatility in the markets was exemplified by the listing of Nazara Technologies Ltd (NS: NAZA ) today. The company’s shares made their debut at Rs 1,990, a premium of 80.74% over their issue price of Rs 1,101. It reached a high of Rs 2,024.9 on the NSE.
Investors who sold the shares at that point were lucky ones. The shares dropped and were locked in a lower circuit of 20% by 12:30 PM where they remained for the rest of the day, closing at Rs 1,592. To be fair to Nazara, that is still 44.6% higher than its issue price.
However, this surge and drop in price give an idea of the level of volatility in the market, and experts have advised retail investors to trade with caution. Nazara Technologies is backed by Rakesh Jhunjhunwala who invested Rs 180 crore in the company in 2018. Jhunjhunwala owns 10.82% of the company and didn’t take part in the stake sale.
The IPO was dearly sought after by participants of all sizes. HNIs (high net-worth individuals) subscribed their portion by 390 times while the retail investors’ portion was oversubscribed 75 times and QIB (qualified institutional buyers) subscribed 104 times. It was expected that Nazara Technologies would have a good listing as the GMP (grey market premium) for the stock remained high throughout.
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