Rekha Jhunjhunwala, wife of the late investor Rakesh Jhunjhunwala, held nearly 7% stake in Nazara Technologies, which she completely sold by June, marking her full exit from the company.
Nazara Technologies Shares Tank 7% After Gaming Bill; Rekha Jhunjhunwala Had Already Exited
The Indian stock market witnessed high volatility in the gaming sector this week after the Online Gaming Promotion and Regulation Bill, 2025 was passed in Parliament. Shares of Nazara Technologies came under heavy selling pressure, tumbling nearly 7% in a single day to ₹1,085. This sharp decline wiped out almost ₹916 crore in investor wealth.
Interestingly, ace investor Rekha Jhunjhunwala had already exited the company before this turmoil. According to a Financial Express report (July 25, 2025), Rekha Jhunjhunwala held about 7.06% stake (61.8 lakh shares) in Nazara Technologies as of March 2025. However, by June, she had sold her entire holding.
Reports suggest that she offloaded her stake at an average price of ₹1,225 per share, booking an estimated ₹334 crore from the exit.
Market experts believe the passage of the gaming bill has triggered uncertainty among investors, leading to a sell-off in listed gaming companies. While the long-term impact of the regulation is yet to be seen, Nazara’s sharp fall highlights investor concerns about stricter rules for the online gaming industry.
Rekha Jhunjhunwala Exits Nazara; 25 Companies Still in Portfolio Worth Over ₹40,000 Cr
The recent developments in the gaming sector have brought Nazara Technologies into sharp focus. For Rekha Jhunjhunwala, however, the timely exit not only shielded her portfolio from current volatility but also marked the symbolic end of her late husband and legendary investor Rakesh Jhunjhunwala’s legacy stake in the company.
As of now, Rekha Jhunjhunwala continues to hold investments in 25 listed companies across India, with an estimated combined value of over ₹40,000 crore.
Other Big Investors Still Holding Nazara Shares
While Rekha Jhunjhunwala has moved out, several high-profile investors remain exposed to Nazara’s sharp swings.
Madhusudan Kela, a renowned market veteran, owns about 10.96 lakh shares (1.18% stake).
Nikhil Kamath, co-founder of Zerodha, holds 15.04 lakh shares (1.62% stake) through his firm Kamath Associates.
For these investors, the big question now is whether to hold on or trim exposure.
Concerns Over Moonshine Tech Link
The market downturn is largely attributed to Nazara’s indirect association with Moonshine Technologies, operator of PokerBaazi. Although Nazara clarified that Moonshine’s revenue is not consolidated in its financial results, even this indirect link has been enough to trigger uncertainty and dent investor confidence.
Brokerage Firms Turn Cautious
Adding to the pressure, ICICI Securities downgraded its rating on Nazara, cutting the target price from ₹1,500 to ₹1,100. The brokerage also revised its earlier ₹400 valuation of Moonshine to zero, signaling heightened risk perception.
However, ICICI Securities noted that other verticals of Nazara — including gamified early learning, publishing, and gaming arcades — are unlikely to be affected by the new Online Gaming Promotion and Regulation Bill, 2025.
Company’s Stand
Nazara Technologies has reiterated that in Q1 FY26, there was no revenue contribution from Real Money Gaming (RMG). The company further stated that it does not expect any significant impact on its revenue or EBITDA going forward.
Yet, in the stock market, perception often outweighs reality. Even an indirect association with real money gaming has been enough to shake investor trust.
Nazara’s Market Debut in 2021
Founded in 1999, Nazara Technologies is among India’s earliest gaming companies, with a footprint that extends to Africa and North America. The company made a strong debut on the stock market in March 2021, drawing significant attention from investors.
Strong Growth, Yet Challenges Remain
Between FY20 and FY25, Nazara’s revenue grew at an impressive 46% CAGR, reaching ₹1,624 crore in FY25. During the same period, the company reported a net profit of ₹51 crore, but also faced an operating loss of ₹114 crore, reflecting the challenges within its business model.
Management’s Key Focus Areas
Looking ahead, Nazara’s management has outlined its priorities:
Global Expansion
Strategic Acquisitions
Strengthening eSports and Gaming IPs
Enhancing efficiency through AI-driven solutions
FAQ: Rekha Jhunjhunwala & Nazara Technologies
1. Who is Rekha Jhunjhunwala and what was her stake in Nazara Technologies?
Rekha Jhunjhunwala is the wife of the late legendary investor Rakesh Jhunjhunwala. She held approximately 7.06% stake (61.8 lakh shares) in Nazara Technologies as of March 2025.
2. Has Rekha Jhunjhunwala sold her shares in Nazara?
Yes, she completely exited Nazara Technologies by June 2025, selling her entire holding at an average price of ₹1,225 per share, earning an estimated ₹334 crore.
3. Why did Nazara Technologies shares fall recently?
Shares of Nazara Technologies tumbled nearly 7% in a single day to ₹1,085 after the passage of the Online Gaming Promotion and Regulation Bill, 2025, triggering uncertainty among investors about stricter online gaming regulations.
4. How did Rekha Jhunjhunwala’s exit affect her portfolio?
Her timely exit shielded her portfolio from the current market volatility in the gaming sector and marked the symbolic end of Rakesh Jhunjhunwala’s legacy stake in Nazara Technologies.
5. What other investments does Rekha Jhunjhunwala have?
Currently, she holds stakes in 25 listed companies across India, with an estimated combined value of over ₹40,000 crore.
6. Who else are major investors in Nazara Technologies?
Madhusudan Kela: 10.96 lakh shares (1.18% stake)
Nikhil Kamath (Zerodha co-founder via Kamath Associates): 15.04 lakh shares (1.62% stake)
7. Why is the market concerned about Nazara Technologies?
The market is wary due to Nazara’s indirect association with Moonshine Technologies, operator of PokerBaazi. Even though Moonshine’s revenue is not consolidated in Nazara’s financials, this link has shaken investor confidence.
8. How have brokerage firms responded?
ICICI Securities downgraded Nazara’s rating, lowering its target price from ₹1,500 to ₹1,100. They also reduced their earlier valuation of Moonshine from ₹400 to zero. However, other verticals such as gamified early learning, publishing, and gaming arcades are expected to remain unaffected by the new gaming bill.
9. What is Nazara Technologies’ stance on Real Money Gaming (RMG)?
Nazara clarified that in Q1 FY26, it recorded no revenue from RMG and does not expect significant impact on its revenue or EBITDA going forward.
10. When was Nazara Technologies founded and listed?
Nazara Technologies was founded in 1999 and is among India’s earliest gaming companies. It made a strong stock market debut in March 2021, with a presence extending to Africa and North America.
11. How has Nazara’s financial performance been recently?
Between FY20 and FY25, Nazara’s revenue grew at a 46% CAGR, reaching ₹1,624 crore in FY25. The company reported a net profit of ₹51 crore but also an operating loss of ₹114 crore, reflecting challenges in its business model.
12. What are Nazara Technologies’ key future focus areas?
The company plans to focus on:
Global Expansion
Strategic Acquisitions
Strengthening eSports and Gaming IPs
Enhancing efficiency via AI-driven solutions
13. How did the passage of the Online Gaming Promotion and Regulation Bill, 2025 affect the gaming sector?
The bill introduced stricter regulations for online gaming companies, creating uncertainty among investors. Many investors sold shares in listed gaming companies, causing a sharp market correction.
14. Did Rekha Jhunjhunwala sell her shares because of the gaming bill?
Reports suggest she sold her shares before the bill’s passage, indicating her exit was strategic and timely, protecting her portfolio from potential regulatory impact.
15. What was the financial impact of the Nazara share slump on investors?
The 7% drop in Nazara shares in one day led to losses of approximately ₹916 crore for investors holding the stock.
16. Are other gaming companies experiencing similar volatility?
Yes, many listed gaming companies in India are facing heightened volatility due to the bill, investor uncertainty, and indirect exposure to real money gaming platforms.
17. How significant is Nazara’s indirect link to Moonshine Technologies?
Moonshine Technologies operates PokerBaazi, a real money gaming platform. Nazara clarified that Moonshine’s revenue is not included in its financials, but investors remain cautious due to perceived regulatory risk.
18. What are the key risks highlighted by brokerage firms?
Brokerages like ICICI Securities have reduced target prices and valuations for Nazara, citing risks from regulatory changes, investor sentiment, and indirect exposure to real money gaming, despite strong performance in other business segments.
19. What makes Nazara Technologies a pioneer in India’s gaming sector?
Founded in 1999, Nazara was among India’s first gaming companies to expand globally, entering markets in Africa and North America, and has developed multiple gaming verticals including gamified learning, eSports, and mobile games.
20. How does Nazara plan to maintain growth despite regulatory concerns?
The company is focusing on diversifying revenue streams, expanding globally, acquiring strategic assets, strengthening gaming IPs, and improving AI-driven operational efficiency.
21. Has the exit of Rekha Jhunjhunwala affected investor confidence?
Her exit is seen as strategic and protective, but some market participants interpret it as a signal of caution, contributing to short-term market nervousness.
22. How does Nazara’s business model balance profit and operating losses?
While the company achieved a net profit of ₹51 crore in FY25, it also reported an operating loss of ₹114 crore, reflecting ongoing investment in global expansion, acquisitions, and product development.
23. Will the gaming bill impact Nazara’s core businesses?
According to management, gamified early learning, publishing, and gaming arcades are unlikely to be impacted, and Real Money Gaming (RMG) has minimal contribution to current revenue.
24. What should current investors in Nazara consider?
Investors should evaluate:
Regulatory risks from the new gaming bill
Indirect exposure to Moonshine/PokerBaazi
Long-term growth potential in global markets and eSports
Company’s strategic investments and AI efficiency plans
25. What is the long-term outlook for Nazara Technologies?
Despite short-term volatility, the long-term outlook remains positive, supported by robust revenue growth, global expansion, strong IPs, and diversified gaming verticals, though regulatory clarity will be key.
