Nazara Technologies shares fell sharply for the second consecutive day, dropping 11% on Thursday, following the Lok Sabha’s passage of the online money gaming ban. The stock has now declined 22% in two sessions, even as the company has no direct involvement in real-money gaming.
Nazara Technologies Limited, headquartered in Mumbai, Maharashtra, is a leading digital gaming and interactive media company in India. It develops mobile and console games, gamified early learning platforms, and other interactive entertainment solutions. Its portfolio spans esports, educational gaming, and casual/social gaming, with an indirect presence in real-money gaming (RMG) through strategic investments.
On Thursday, August 21, 2025, Nazara Technologies shares continued to experience heavy selling pressure, falling 11% to an intraday low of ₹1,085 on the NSE, after a 13% decline the previous day. The stock opened at ₹1,178, down from its previous close of ₹1,219.40. Around 9:45 a.m., the share price stood at ₹1,094, marking a two-day cumulative loss of 22.5%.
The sale comes after the Lok Sabha passed the Promotion and Regulation of Online Gaming Bill, 2025, which criminalizes real-money gaming in India. The legislation categorizes gaming into four segments: esports, educational, social/casual, and real-money gaming, with RMG explicitly prohibited.
Despite the market reaction, Nazara clarified that it has no direct revenue or EBITDA contribution from RMG. Its only exposure is a 46.07% stake in Moonshine Technologies Pvt. Ltd., which operates PokerBaazi. Nazara does not control Moonshine and does not consolidate its financials, though it has invested ₹805 crore via cash and stock, alongside ₹255 crore in convertible shares.
Market analysts highlight that the perception of risk due to Moonshine’s operations is driving volatility. Short-term trading remains cautious, with technical support levels breached at ₹1,220 and potential stabilization expected near ₹1,000–980, according to equity research experts.
Also Read: Nazara Tech Shares Slide as India Moves to Ban Real-Money Gaming
Nazara’s shareholder base includes prominent individual and institutional investors. Madhusudan Murlidhar Kela holds 1.18%, while Zerodha’s Nikhil and Nithin Kamath, through Kamath Associates and NKsquared, collectively own 3.51%. SBI Mutual Fund is the largest institutional investor with 7.71% stake. Notably, veteran investor Rekha Jhunjhunwala has exited or reduced her holdings below the 1% disclosure threshold in the June quarter.
Despite the stock’s sharp correction, industry experts note that Nazara’s diversified, non-RMG businesses remain robust, with strong user engagement, expanding gamified content, and healthy margins in esports. Investors are advised to adopt a cautious stance until regulatory clarity emerges and market sentiment stabilizes.
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