Rekha Jhunjhunwala Exits Nazara Ahead of Gaming Bill, Avoids ₹334 Crore Loss

Star investor Rekha Jhunjhunwala made a timely and complete exit from Nazara Technologies in the June quarter, just weeks before the government introduced the Online Gaming Bill 2025, which triggered a sharp selloff in the stock. Her decision saved the Jhunjhunwala portfolio from estimated losses of over ₹334 crore, as Nazara shares tumbled nearly 18% in the past week alone.

Jhunjhunwala, wife of late market veteran Rakesh Jhunjhunwala and executor of his estate, had inherited a substantial stake in the gaming company. She began offloading her holding in early June, selling tranches between June 2–6 and again on June 9–10. By June 13, she had fully divested, securing proceeds of around ₹770 crore and booking nearly four-fold returns since the initial investment.

While she opted for a complete withdrawal, other marquee investors such as Madhusudan Kela (1.18%) and Nikhil Kamath (1.62%) have chosen to remain invested, betting on Nazara’s long-term adaptability despite near-term regulatory headwinds.

Nazara, once a pandemic-era market darling, has built a diversified presence across casual gaming, eSports, and gamified early learning in India, Africa, and North America. However, its indirect exposure to real-money gaming through Moonshine Technologies (PokerBaazi’s parent) has become a key concern. Moonshine reported ₹192 crore revenue with an EBITDA loss of ₹73.9 crore in Q1FY26. With PokerBaazi contributing nearly 35% of Nazara’s sum-of-parts valuation (~₹430 per share), regulatory risks loom large.

The Online Gaming Bill, passed in Parliament and signed into law on August 22, marks India’s first comprehensive attempt to regulate the sector. While encouraging e-sports and social gaming, it imposes a complete ban on paid money games with penalties of up to three years in prison or ₹1 crore in fines.

This regulatory overhang has cast a shadow on Nazara’s future growth. Jhunjhunwala’s early exit reflects caution, while contrarian investors like Kela and Kamath are wagering that Nazara’s diversified model will help it weather the storm.