Nazara Technologies witnessed significant institutional activity on Monday as SBI Mutual Fund, India's largest fund house, divested part of its holdings in the gaming and e-sports company. Despite the selling pressure from the major institutional investor, the stock demonstrated strong resilience with impressive gains across both exchanges.

Transaction Overview

SBI Mutual Fund executed a substantial block deal on Monday, selling 45 lakh shares of Nazara Technologies at an average price of ₹240.18 per share. The transaction, valued at approximately ₹108 crore, represents just over 1% of the fund house's total holding in the company based on its September quarter shareholding data.

SBI Mutual Fund's Position

Based on September quarter shareholding data, SBI Mutual Fund maintained a 5.90% stake in Nazara Technologies, owning 2.10 crore shares. The Monday transaction represents a partial divestment of the fund's position, with the majority of its holding remaining intact. This strategic reduction suggests portfolio rebalancing rather than a complete exit from the gaming sector.

Broader Shareholding Pattern

Mutual funds collectively held a 6.60% stake in Nazara Technologies at the end of the September quarter. The company maintains a diversified shareholder base with significant participation from various institutional and retail investors.

Market Performance

Despite the institutional selling pressure, Nazara Technologies shares surged 6.10% on Monday, closing at ₹252.00. The stock experienced a notable spike post noon during Monday's trading session, indicating strong buying interest that absorbed the institutional selling. The stock has remained flat in 2025 but delivered an 18% gain in 2024, reflecting the gaming sector's evolving dynamics.

Nazara Technologies , a prominent player in the Indian gaming industry, has outlined an ambitious expansion strategy across its diverse gaming portfolio. The company plans to significantly scale its operations in multiple segments, aiming for substantial growth in the coming years.

Funky Monkeys Expansion

Nazara Tech plans to expand its Funky Monkeys locations from the current 14-15 to 100 over the next few years. This substantial increase in physical presence suggests a strong commitment to the experiential gaming segment.

Nodwin's Billion-Dollar Ambition

Nodwin, a subsidiary of Nazara Tech, has set its sights on becoming a billion-dollar company within the next 5-7 years. This ambitious target highlights the company's confidence in the esports and gaming content creation market.

Overall Growth Targets

The gaming company has outlined its growth expectations for the near future:

These targets indicate Nazara's focus on maintaining strong profitability alongside its expansion plans.

Kiddopia's Subscriber Growth

Nazara Tech expects positive subscriber growth for Kiddopia, its edutainment app for children, by Q4. This projection suggests a potential turnaround or acceleration in user acquisition for this segment of their business.

Recent Corporate Actions

According to the latest LODR (Listing Obligations and Disclosure Requirements) data, Nazara Technologies has made significant moves to strengthen its position in the gaming market:

1. Acquisition of Next Wave Multimedia:

   • Nazara has increased its stake in Next Wave Multimedia Private Limited, a subsidiary.
   • The company has paid ₹4.99 crore for acquiring an additional 8.37% equity stake.
   • This acquisition increases Nazara's total holding in Next Wave from 74.88% to 83.25%.

2. Future Acquisition Plans:

   • Nazara plans to acquire the remaining 16.75% equity stake in Next Wave for ₹15 crore.
   • The timeline for this acquisition has been extended to March 31, 2026.

These strategic moves underscore Nazara's commitment to consolidating its position in the gaming industry and driving growth across its portfolio of companies.

Nazara Technologies' multi-pronged expansion strategy, encompassing physical locations, digital platforms, and strategic acquisitions, positions the company for potential significant growth in the dynamic gaming and esports markets. As the company executes these plans, investors and industry observers will be keenly watching the impact on Nazara's market position and financial performance in the coming years.