How Nazara’s lost opportunity in 2018 turned out to be a blessing in disguise

NEW DELHI: Nazara Technologies was looking forward to launching its IPO way back in 2018 and had also got necessary approvals from Sebi in April that year.

But a strong selloff in midcap and smallcap stocks in the wake of the implementation of Sebi’s reclassification of mutual fund categories changed investor sentiment overnight. The highs of January 2018 proved to be the record highs for midcap and smallcap indices for next two years before they came to alive again recently.

Nazara, a smallcap firm, thought the situation was not ideal for an IPO as risk aversion increased.