After making stellar stock market debut on Tuesday, shares of Rakesh Jhunjhunwala-backed Nazara Technologies dropped over 9 per cent in opening trade on Wednesday as investors resorted to profit booking at elevated levels.

Nazara Technologies shares opened lower at Rs 1,489 against previous close price of Rs 1,576.80 on the Bombay Stock Exchange. The stock fell as much as 9.19 per cent to hit low of Rs 1,431.85, while market cap slumped to Rs 4,654.26 crore. Meanwhile, the BSE benchmark Sensex was trading 0.87 per cent lower at 49,702.

In a similar trend, shares of Nazara Technologies were quoting at Rs 1,541.85, down 3.15 per cent on the National Stock Exchange. The stock hit a low of Rs 1,432 after opening lower at Rs 1,490.

Shares of gaming firm made a robust opening on stock exchanges on Tuesday, listing at Rs 1,971, a 79 per cent premium over its issue price of Rs 1,101 per share on the BSE. On the NSE, the stock belled 80.74 per cent higher at Rs 1,990. Post listing, Nazara Tech shares fell 20 per cent from the listing price to close the day at Rs 1,592 on the BSE.

India-based sports media platform is the first gaming company to be listed on the stock exchanges. The Rs 583 crore IPO of Nazara Technologies had received overwhelming response from investors, oversubscribing by 175 times. The price band for the issue, which closed on March 19, was fixed at Rs 1,100-01. Investors bided for a minimum of 13 equity shares and in multiples of 13 thereafter, which means they invested minimum of Rs 14,300 per lot. The allocation of shares Nazara Technologies after its public issue was finalised on March 25.

The IPO was an offer for sale (OFS) of up to 5,294,392 equity shares by the promoters and existing shareholders. The promoters currently hold 22.88 per cent in the company. Post-IPO, the promoter holding will come down to 20.61 per cent. Rakesh Jhunjhunwala, who owned 11.38 per cent stake in the company, did not participate in the OFS.