In a dramatic turn of events for India’s gaming industry, ace investor Rekha Jhunjhunwala exited her entire holding in Nazara Technologies Ltd. in June 2025 — just weeks before the government ushered in landmark legislation regulating online gaming.
Jhunjhunwala, wife and executor of the estate of late market veteran Rakesh Jhunjhunwala, had inherited a sizable portfolio, including Nazara. She began paring down her holding through multiple tranches, with the first stake sale occurring between June 2-6, followed by another round on June 9-10. By June 13, she had fully divested, ending the estate’s association with one of India’s most prominent listed gaming companies.
While Jhunjhunwala opted for a clean break, other marquee investors such as Madhusudan Kela (1.18%) and Nikhil Kamath (1.62%) have chosen to remain invested, signaling their confidence in the company’s longer-term prospects.
A Timely Exit?
Nazara, known for its diversified presence across interactive gaming, eSports, and gamified early learning in India, Africa, and North America, was once a market favorite—particularly during the pandemic-led digital consumption surge. But regulatory uncertainty surrounding real-money gaming formats has clouded investor sentiment.
Jhunjhunwala’s complete withdrawal is estimated to have fetched Rs 770 crore, delivering four-fold returns for the estate. Since her exit, however, Nazara’s stock has tumbled nearly 14%, wiping out over Rs 1,700 crore in investor wealth. The counter has slid nearly 19% in the past week, its steepest weekly drop since listing.
Her exit—just ahead of regulatory changes—could be seen as either shrewd foresight or a cautious reshuffling of the Jhunjhunwala estate’s portfolio. By contrast, Kela and Kamath’s continued presence reflects a contrarian bet: confidence that Nazara’s diversified model and adaptability could help it weather the storm.
What the Act Means for Industry
The Union Cabinet cleared the Online Gaming Bill on 19 August, it was tabled in the Lok Sabha on August 20, passed by Rajya Sabha on August 21, and received Presidential assent on 22 August, officially becoming law.
The Bill represents the first comprehensive attempt to regulate online gaming at the national level.
This Bill encourages e-sports and online social games while prohibiting harmful online money gaming services, advertisements, and financial transactions related to them.
The objective of the bill is to protect individuals, especially youth and vulnerable populations, from the adverse social, economic, psychological and privacy related impacts of such games. The Bill has a provision of complete ban on offering, operating, or facilitating online money games. There is a provision of imprisonment up to three years and fine up to one crore rupees or both in case of violation of the law related to online money gaming.
What it means to Nazara Technologies
The Online Gaming Bill poses a negative impact on Nazara Technologies despite its primary focus on casual, freemium, and Esports segments. The company has indirect exposure to real-money gaming through its associate, Moonshine Technologies, which owns PokerBaazi. Moonshine reported revenues of Rs 192 crore with an EBITDA loss of Rs 73.9 crore in Q1FY26, and PokerBaazi accounts for nearly 35% of Nazara’s sum of the parts valuation at Rs 430 per share. Given this significant exposure, the regulatory overhang from the bill is expected to weigh on Nazara’s overall outlook, making the net effect adverse.
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