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Nazara Technologies shares came under selling pressure after the Lok Sabha passed the Promotion and Regulation of Online Gaming Bill, 2025
Nazara Technologies Stock Crash
Rekha Jhunjhunwala Portfolio Stock: Nazara Technologies came under renewed selling pressure on Thursday, August 21, after the Lok Sabha passed the Promotion and Regulation of Online Gaming Bill, 2025. The stock slumped 11% in morning trade on the NSE, a day after shedding 13%, hitting a 15-week low of Rs 1,125.
The proposed legislation seeks to prohibit all pay-to-play online games — including those of skill and chance — effectively pausing operations of regulated real-money gaming (RMG) platforms across India. While industry stakeholders criticised the move, the government defended it, citing the addictive nature of such games and their impact on mental health among young users.
Nazara clarified in an exchange filing that it has no direct exposure to RMG businesses. Its only indirect exposure is via a 46.07% stake in Moonshine, which owns PokerBaazi. “As per the latest financials, the contribution of RMG to Nazara’s revenues and EBITDA is nil,” the company stated.
However, speaking to CNBC-TV18, founder and CEO Nitish Mittersain admitted that the company’s ₹805 crore investment in PokerBaazi could be at risk if the ban is implemented, though he maintained that Nazara’s core business remains strong.
Brokerage ICICI Securities downgraded its view on the stock, reducing Moonshine’s valuation in Nazara’s books from Rs 400 crore to zero, and cutting its target price from Rs 1,500 to ₹1,100. It noted that Nazara’s other segments — gamified early learning, publishing, and gaming arcades — remain unaffected, while the recognition of eSports as a sport could prove to be a long-term positive for its Nodwin Gaming unit.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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