How Rekha Jhunjhunwala’s well timed exit saved Rs 334 cr as Nazara shares sink publish Gaming Bill – Market Information

Nazara Technologies confronted a pointy market sell-off this week, with shares tumbling almost 7 per cent intraday to Rs 1,302.45. The fall worn out round Rs 916 crore in investor wealth, as Parliament handed the Promotion and Regulation of Online Gaming Bill, 2025. The laws modified the situation throughout gaming corporations, notably these perceived to have publicity to actual cash gaming (RMG).

Rekha Jhunjhunwala’s well timed exit

FinancialExpress.com, in its July 25 Stock Insight report, famous that investor Rekha Jhunjhunwala had already exited her stake in Nazara Technologies Ltd by June 2025, effectively earlier than the newest regulatory turmoil. At the top of March 2025, she held a 7.06 per cent stake, amounting to 61.8 lakh shares. By June, nonetheless, she bought her whole holding at a mean worth of round Rs 1,225 per share, netting almost Rs 334 crore.

Her choice not solely insulated her portfolio from the continued turbulence but additionally marked the closure of her late husband Rakesh Jhunjhunwala’s legacy within the firm, the place he as soon as held 10.82 per cent. Rekha continues to be one among India’s most influential buyers, with stakes in 25 listed corporations value over Rs 40,000 crore, in keeping with Trendlyne.

However, different marquee buyers stay invested in Nazara. Market veteran Madhusudan Kela holds 10.96 lakh shares (1.18 per cent), whereas Zerodha co-founder Nikhil Kamath, via Kamath Associates, owns 15.04 lakh shares (1.62 per cent). Their publicity has raised questions on whether or not they may keep the course or trim their holdings as regulatory uncertainty deepens.

Nazara’s oblique publicity via Moonshine Technology, the operator of PokerBaazi, has notably rattled markets. Though Nazara clarified that Moonshine’s income just isn’t consolidated into its financials, the affiliation was sufficient to spark a wave of investor warning.

Brokerage downgrades and market notion

Reflecting this sentiment, ICICI Securities has downgraded Nazara to ‘reduce’, slashing its goal worth from Rs 1,500 to Rs 1,100. The brokerage assigned zero worth to its earlier Rs 400 estimate for Moonshine in mild of the proposed ban. However, it reveals that Nazara’s different verticals resembling gamified early studying, publishing, and gaming arcades stay unaffected.

Nazara has additionally pressured that RMG contributed nothing to its Q1 FY26 revenues and that it doesn’t anticipate any materials impression on reported income or EBITDA. Yet, the market’s response underscores how even oblique linkages to actual cash gaming can erode confidence.

What can we learn about Nazara Technologies?

Nazara Technologies was based in 1999 and listed in 2021. It is amongst India’s first gaming corporations to make a worldwide mark, with presence in markets resembling Africa and North America. Its revenues grew at a compound annual fee of 46 per cent from FY20 to FY25, touching Rs 1,624 crore final 12 months. Despite attaining web earnings of Rs 51 crore in FY25, the corporate logged working losses of Rs 114 crore.

At current, the inventory trades at a steep price-to-earnings ratio of 198x, which is effectively above the business median of 98x. This valuation premium could come beneath scrutiny if regulatory headwinds persist.

Meanwhile, the Nazara’s administration has outlined a development technique which incorporates world growth via acquisitions, strengthening eSports and gaming IPs, and leveraging synthetic intelligence for effectivity. While the corporate stays optimistic about FY26, the regulatory overhang poses important challenges.