In one of the most closely watched stock market developments of 2025, Rekha Jhunjhunwala, wife of the late Rakesh Jhunjhunwala, has fully exited her stake in Nazara Technologies. The move marks the end of the Jhunjhunwala family’s association with India’s only listed online gaming and sports media company and has stirred significant discussion among investors and market watchers.

Between June 2 and June 13, 2025, Rekha Jhunjhunwala sold her entire 7.06 percent stake in Nazara Technologies, amounting to 61.8 lakh shares. The bulk of the sale occurred on June 13, when 27.23 lakh shares were offloaded through open market transactions on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). On that day, 13 lakh shares were sold on the BSE and 14.23 lakh shares on the NSE. The shares were sold at an average price of around ₹1,225 each, yielding a transaction value of nearly ₹334 crore, or approximately USD 40 million.

When seen in the larger context, this exit underscores the spectacular returns generated by the Jhunjhunwala family’s investment in Nazara. Rakesh Jhunjhunwala had originally invested about ₹180 crore in 2017–18 to acquire a 10.82 percent stake in the company. Over the years, as Nazara expanded across gaming, esports, and gamified learning, that investment grew manifold. Including previous part-exits, the family’s total exit value is estimated at around ₹770 crore, representing a four-fold return on the original outlay.

The timing of Rekha Jhunjhunwala’s exit has been particularly noteworthy. Just weeks after her complete sale, the Union Cabinet approved the Promotion and Regulation of Online Gaming Bill, 2025. The bill, aimed at regulating online platforms offering monetary rewards, has created ripples across the gaming sector. It seeks to address risks related to mental health, money laundering, and fraud, and imposes penalties that include up to three years of imprisonment or fines of up to ₹1 crore for violators. Following its introduction in February 2025, the bill was referred to a Select Committee for review, but its approval in mid-2025 immediately spooked the markets.

Nazara Technologies, despite clarifying that it has no direct exposure to real-money gaming, became one of the worst-hit stocks due to investor concerns. The company’s subsidiary, Moonshine Technology, which owns PokerBaazi, does not contribute to Nazara’s consolidated revenue or EBITDA. However, with Nazara holding a 46.07 percent stake in Moonshine valued at over ₹1,000 crore, worries of potential write-downs led investors to dump the stock.

Brokerage firm ICICI Securities downgraded Nazara to a “reduce” rating, cutting its target price from ₹1,500 to ₹1,100. They assigned zero value to Moonshine, compared to an earlier estimate of ₹400. As a result, Nazara’s stock plunged sharply, dropping 18.25 percent in just three trading sessions and hitting a low of ₹1,145.55 on August 22, 2025. The stock closed at ₹1,193.90 on August 21, erasing nearly ₹916 crore in investor wealth in a single day.

Interestingly, Nazara’s fundamentals appeared strong in the months leading up to this regulatory shock. For the financial year ending March 2025, the company reported a 22 percent jump in net profit to ₹87 crore and a 43 percent rise in revenue to ₹1,624 crore. EBITDA hit a record-high of ₹153 crore. In Q4 FY25 alone, Nazara’s net profit was ₹4 crore, compared to just ₹18 lakh in the same quarter last year, while operational revenue surged 95 percent to ₹520 crore. The robust growth underscored the rising appeal of its portfolio, which includes popular titles like World Cricket Championship, CarromClash, and Kiddopia, along with esports ventures Nodwin Gaming and Sportskeeda.

Nazara’s stock even surged 7.6 percent after Rekha Jhunjhunwala’s final exit on June 13, touching a 52-week high of ₹1,341.80 on the NSE and ₹1,340 on the BSE. That short-lived rally highlighted the continued market appetite for the stock before the regulatory concerns weighed it down.

Other marquee investors, however, have chosen to stay put. Market veteran Madhusudan Kela holds 10.96 lakh shares, amounting to a 1.18 percent stake, while Zerodha co-founder Nikhil Kamath holds 15.04 lakh shares, or a 1.62 percent stake, through Kamath Associates. Their decision to hold on has been seen as a sign of confidence in Nazara’s long-term prospects, particularly in esports and gamified learning. That said, both investors faced notional losses when the stock tumbled in August. Kela’s stake was valued at ₹142.79 crore, while Kamath’s stood at ₹195.99 crore after a combined loss of about ₹26 crore in just one trading session.

For Rekha Jhunjhunwala, however, the exit represents not only strong returns but also astute portfolio management. With a disclosed portfolio across 25 stocks valued at nearly ₹38,918 crore, the Nazara exit, though significant in headlines, is only a small fraction of her overall holdings.

The story also brings a full circle moment for the Jhunjhunwala legacy in Nazara. Rakesh Jhunjhunwala’s early bet on India’s gaming sector in 2017–18 turned into one of his most rewarding investments. Today, with a complete exit, the family has realized substantial gains and avoided the regulatory-driven volatility that has since engulfed the stock.

As the online gaming industry faces a new era of scrutiny under the Promotion and Regulation of Online Gaming Bill, 2025, Nazara Technologies will have to chart its future carefully. While the company’s strong operational growth remains intact, investor sentiment will likely depend on how regulators frame the final rules and how effectively Nazara distances itself from real-money gaming perceptions.

Disclaimer:
This article is for informational purposes only and should not be considered as investment advice. Stock market investments are subject to risks, and readers are advised to consult a certified financial advisor before making any investment decisions. The information provided is based on publicly available data and reliable sources at the time of writing.