Nazara Technologies Share Price: Stock Tanks 23% In 2 Days! Rekha Jhunjhunwala Cuts Stake, Others Hold – Time To Buy, Sell Or Hold?

Shares of Nazara Technologies witnessed a steep fall over the last two trading sessions, dropping almost 23% by Thursday, even as the company issued a clarification stating it has no direct exposure to real money gaming (RMG) businesses.

On Thursday, Nazara’s stock tanked 11.18% to Rs 1,085 in intra-day trade on the BSE. However, it later recovered most of its early losses and closed at Rs 1,205.60, still down 1.31%.

A day earlier, on Wednesday, shares of the company had already tumbled nearly 13%, taking the combined fall over two sessions to 23%.

Meanwhile, shares of Delta Corp, a gaming and hospitality company, also came under pressure, slipping 2.79% to end at Rs 91.21 on Thursday.

Why Gaming Stocks Are Falling?

The sharp decline in gaming-related stocks came in the backdrop of Parliament passing the Promotion and Regulation of Online Gaming Bill, 2025.

The bill, which aims to ban all forms of online money games while promoting eSports and online social gaming, was approved by the Rajya Sabha without debate amid din.

Piloting the bill in the Upper House, Minister of Electronics and IT Ashwini Vaishnaw said the legislation will help promote nearly two-thirds of India’s online gaming segment.

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What Company Said?

Amid concerns raised by investors, Nazara Technologies issued a statement clarifying its position on the proposed legislation. The company stressed that it has no direct exposure to RMG businesses. As per its latest reported financials (Q1 FY26), the contribution of RMG to both revenues and EBITDA is nil.

The company explained that its only indirect exposure to the RMG segment is through its 46.07% stake in Moonshine Technologies Private Limited (PokerBaazi). Since Nazara neither holds a majority stake nor exercises control in Moonshine, its revenue is not consolidated into Nazara’s financial statements.

As a result, there is no impact on the company’s reported revenue or EBITDA. In fact, the contribution to profit after tax (PAT) from Moonshine, as share of profit and loss by associate, was negative in Q1 FY26.

Nazara further disclosed that it has invested Rs 805 crore in Moonshine through a combination of cash and stock. In addition, it holds compulsory convertible shares worth Rs 255 crore in the company.

Nazara Technologies Shareholding Pattern

The steep fall in the stock also coincides with changes in Nazara’s shareholding pattern. According to data from Trendlyne, prominent investor Rekha Jhunjhunwala has been steadily reducing her stake in the company over the past two years.

Her holding, which was 10% in June 2023, declined to 9% in December 2023, 8.5% in March 2024, 8.4% in June 2024, and 8.1% in September 2024.

By March 2025, her stake dropped to 7.1%, and in June 2025, it slipped below 1% for the first time, signaling a significant exit.

Other notable shareholders in Nazara include Kamath Associates, holding 15,04,782 shares (1.62%), veteran investor Madhusudan Murlidhar Kela with 10,96,305 shares (1.18%), NKsquared with 17,50,688 shares (1.89%), and Ram Babu Gupta, who owns 13,86,269 shares (1.50%).

The combination of regulatory uncertainty, investor exits, and market reactions has put Nazara Technologies under pressure. However, the company has sought to reassure stakeholders that its financial performance remains insulated from the direct impact of the proposed online gaming ban.

Nazara Technologies Share Price Target

Brokerage firm ICICI Securities has downgraded Nazara Technologies to reduce and cut its target price to Rs 1,100 from the earlier Rs 1,500.

According to Trendlyne, Nazara has a valuation score of 29, which signals an expensive valuation. Its current P/E of 104.3 puts it in the neutral zone, as the stock has spent about 41.7% of the time below this level. This suggests most gains may already be priced in. 

The consensus view from 11 analysts is HOLD, with an average target price of Rs 1,252, implying a small upside of 3.9% from the current level.