Nazara Tech Shares Slide 5% As PokerBaazi Halts Real-Money Gaming
Nazara Technologies clarified in an exchange filing that it has no direct exposure to real-money gaming.
Shares of Nazara Technologies Ltd continued their downward spiral on Friday, falling another 5% following the cessation of real-money gaming operations by its associate company, PokerBaazi.
The decline comes in the wake of the Parliament's approval of the Promotion and Regulation of Online Gaming Bill, 2025, which bans all forms of online money-based games.
The bill, passed by both the Lok Sabha and Rajya Sabha without debate, aims to curb addiction, financial losses, and security threats associated with real-money gaming.
Nazara Technologies clarified in an exchange filing that it has no direct exposure to real-money gaming (RMG). However, it holds a 46.07% stake in Moonshine Technologies, the parent company of PokerBaazi, which has now ceased all RMG operations in compliance with the new law.
Despite the company’s assertion that RMG contributes nil to its revenue and Ebitda, the market reacted sharply. Nazara’s stock has plunged over 17% in the past three trading sessions
The scrip fell as much as 4.99% to Rs 1,145.10 apiece. It pared losses to trade 3.56% lower at Rs 1,162.30 apiece, as of 01:44 p.m. This compares to a 0.56% decline in the NSE Nifty 50 Index.
It has risen 22% in the last 12 months. Total traded volume so far in the day stood at 2.9 times its 30-day average. The relative strength index was at 23.
Out of nine analysts tracking the company, three maintain a 'buy' rating, two recommend a 'hold,' and four suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 12.6%
