Explained: Why Nazara Technologies shares fell sharply after strong stock market debut

Shares of Rakesh Jhunjhunwala-backed Nazara Technologies tumbled on the stock market a day after listing at a premium. Here is all you need to know:

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.