Nazara Technologies Stock Price Down: What’s Behind the 75% Drop?

The shares of Nazara Technologies, India's only listed gaming entity, underwent a sharp price correction in trade on Friday, having declined 75 per cent, as the stock began trading ex-bonus and ex-spilt.  

The stock dipped to intraday low of Rs 279.30 on the BSE bourse as against its previous close of Rs 1,116.85.

This decline of 75 per cent is not as a result of any negative development as it occurred due to two corporate actions a 1:2 stock split and a 1:1 bonus issue, implemented simultaneously by the company.

The stock split reduced the face value of each share from Rs 4 to Rs 2, while the 1:1 bonus issue granted one bonus share for every post-split share.

So, if an shareholder owned 5 shares ahead of the stock split will now hold 10 shares post the spilt, and be offered 10 bonus shares, increasing its shareholding to 20 shares.

Nazara Tech's Corporate Actions And Impact On Investors

This is Nazara Technologies’ first-ever stock split and its second bonus issue, the first being in June 2022. Corporate actions like these are aimed at improving liquidity and making the stock more accessible to a wider pool of investors. Analysts expect these measures to encourage trading activity and attract retail participation.

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What Should Investors In Nazara Technologies Ensure?

The shareholders under the T+1 settlement cycle needed to ensure their share were credited to their demat accounts before  the ex-date to become eligible for the bonus and split. Meanwhile, the stakeholders are continuously monitoring the share price movement  post these corporate actions.