Shares of gaming company Nazara Technologies have plummeted by over 23 per cent to Rs 1,115.80 from Rs 1,450 in the last eight sessions in the wake of the government’s move to ban gaming through a bill passed in the parliament. Investor Rekha Jhunjhunwala, who previously held a 7 per cent plus stake in the company, had fully exited her investment in Nazara by June 2025, well before the ban was announced. On Monday, the company’s shares fell 12 per cent in intra-day trading before closing 3.46 per cent lower at Rs 1115.80 on the BSE. Meanwhile, in a stock exchange filing, Nazara Tech said it has no direct exposure to real money gaming (RMG) businesses. As per its latest reported financials (Q1 FY26), the contribution to revenues and EBITDA by RMG business is nil. The company’s only indirect exposure to RMG is through its 46.07 per cent stake in Moonshine Technologies Private Ltd (PokerBaazi). As Nazara does not hold a majority stake or exercise control, Moonshine’s revenue is not consolidated in the company’s financial statements and has no impact on the company’s reported revenue or EBITDA, it said. The company has invested Rs 805 crore towards equity shares in Moonshine through a combination of cash and stock and, in addition, holds compulsory convertible shares amounting to Rs 255 crore, it said. In another exchange filing, the company said Moonshine Technologies has ceased offering real money online gaming operations. The Promotion and Regulation of Online Gaming Act, 2025 imposes a nationwide ban on all real-money online games, while actively encouraging the growth of e-sports and educational or socially beneficial gaming. The law introduces strict regulatory controls and harsh penalties for violations, with the goal of tackling addiction, financial abuse, and criminal activity within the digital gaming space. Jhunjhunwala sells stake ahead of ban Investor Rekha Jhunjhunwala completely offloaded her stake in Nazara Technologies by June 2025, well ahead of the government ban on online gaming. As of March 2025, she held a 7.06 per cent stake—about 61.8 lakh shares. By June, she had sold her entire holding at an average price of around Rs 1,225 per share, netting around Rs 334 crore. Her late husband, investor Rakesh Jhunjhunwala, once owned 10.82 per cent in the company. Rekha remains a big investor in Indian markets, with investments in 25 listed firms worth around Rs 40,000 crore, according to market estimates. Other prominent investors still holding stakes in Nazara include Madhusudan Kela, who owns 10.96 lakh shares (1.18 per cent), and Nikhil Kamath, co-founder of Zerodha, who holds 15.04 lakh shares (1.62 per cent) through Kamath Associates. With regulatory scrutiny mounting, all eyes are now on whether these influential investors will hold their ground, or begin cutting exposure. Nazara Technologies was founded in 1999 and listed in 2021. It is among India’s first gaming companies to make a global mark, with presence in markets such as Africa and North America. The company has a market capitalisation of around Rs 10,000 crore.
