Nazara Tech Shares Plunge 20% Amid Online Gaming Regulation Concerns

1 min read     Updated on 21 Aug 2025, 10:24 AM
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Ashish ThakurScanX News Team
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Overview

Nazara Technologies' stock dropped 20% over two trading sessions following the government's proposal to ban money-based online gaming transactions. The company clarified it has no direct exposure to real money gaming, with only an indirect stake in PokerBaazi through Moonshine Tech. Despite limited direct impact, the stock saw heightened trading activity, with volume surging to 12 times its 30-day average. Analysts have mixed views, with the average price target suggesting a 17.50% upside potential.

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*this image is generated using AI for illustrative purposes only.

Nazara Technologies, a prominent player in the Indian gaming industry, has experienced a significant downturn in its share price, shedding 20% of its value over two consecutive trading sessions. The stock's decline comes in the wake of the central government's proposal for a comprehensive ban on money-based online gaming transactions.

Sharp Decline in Share Price

The company's stock witnessed a steep fall, dropping 11% on Thursday following a 15% decline on Wednesday. As of the latest trading session, Nazara Tech shares were trading at Rs 1,116.70, down 8.42% from the previous close. Notably, the trading volume surged to 12 times its 30-day average, indicating heightened investor activity.

Regulatory Concerns and Company Response

The sharp decline in Nazara's stock price is largely attributed to the government's proposed Online Gaming bill, which could potentially impact the operations of companies in the real money gaming sector. Nitish Mittersain, CEO of Nazara Tech, acknowledged that the proposed bill could pose challenges to PokerBaazi's operating model, a company in which Nazara has an indirect stake. However, Mittersain assured that the company would adapt to the evolving regulatory landscape.

Nazara's Exposure to Real Money Gaming

In response to market concerns, Nazara Technologies clarified its position regarding real money gaming:

  • The company has no direct exposure to real money gaming businesses.
  • Zero revenue and EBITDA contribution from such operations.
  • The only indirect exposure is through a 46.07% stake in Moonshine Tech, which operates PokerBaazi.

Analyst Perspectives

Despite Nazara's limited direct exposure, the market reaction has been significant. Brokerage firm Prabhudas Lilladher noted that PokerBaazi contributes nearly 35% to Nazara's sum-of-the-parts enterprise value, explaining the stock's sensitivity to the regulatory news.

Analyst Recommendations

The current market sentiment towards Nazara Tech is mixed:

Recommendation Number of Analysts
Buy 3
Hold 2
Sell 4

The average price target set by analysts implies a 17.50% upside potential from the current levels.

Looking Ahead

As the gaming industry in India faces potential regulatory changes, companies like Nazara Tech are likely to face short-term volatility. However, the company's diversified portfolio and its readiness to adapt to regulatory changes could play a crucial role in navigating the evolving landscape of the Indian gaming market.

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Nazara Tech Clarifies No Direct Exposure to Real Money Gaming Amid Government Ban Proposal

1 min read     Updated on 20 Aug 2025, 09:02 AM
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Shriram ShekharScanX News Team
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Overview

Nazara Technologies has issued a statement clarifying its position regarding real money gaming (RMG) businesses. The company emphasized it has no direct exposure to RMG, with its only indirect involvement being a 46.07% stake in Moonshine Technologies (PokerBaazi). Nazara has invested Rs 805 crore in Moonshine's equity and holds Rs 255 crore in convertible shares. The company does not anticipate any material impact on its financial performance from proposed online money gaming regulations.

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*this image is generated using AI for illustrative purposes only.

Nazara Technologies Limited, a prominent player in the gaming industry, has issued a clarification regarding its exposure to real money gaming (RMG) businesses in light of the government's proposed ban on online money gaming businesses. The company's statement comes as a response to recent media reports and aims to provide transparency to its investors and stakeholders.

Key Points of Clarification

  • No Direct RMG Exposure: Nazara Tech emphasized that it has no direct exposure to real money gaming businesses. According to the company's latest reported financials, the contribution to revenue and EBITDA from RMG business is nil.

  • Indirect Exposure through Moonshine Tech: The company's only indirect exposure to RMG is through its 46.07% stake in Moonshine Technologies Private Limited (PokerBaazi). Nazara clarified that as it does not hold a majority stake or exercise control, Moonshine's revenue is not consolidated in the company's financial statements and has no impact on Nazara's reported Revenue or EBITDA.

  • Investment Details: Nazara Tech disclosed that it has invested Rs 805.00 crore towards equity shares in Moonshine through a combination of cash and stock. Additionally, the company holds compulsory convertible shares amounting to Rs 255.00 crore in Moonshine.

Financial Impact

Nazara Technologies stated that it does not anticipate any material adverse impact on its operating financial performance (Revenue or EBITDA) in relation to the media reports concerning the proposed ban on online money gaming businesses.

Regulatory Context

The clarification comes in response to media reports regarding the proposed Promotion and Regulation of Online Gaming Bill. While the details of the bill are not explicitly mentioned in the company's statement, it appears to have raised concerns about potential impacts on companies involved in the online gaming sector.

Company's Stance

By issuing this clarification, Nazara Tech aims to provide clarity to its investors and stakeholders about its position in the real money gaming market. The company's statement underscores its commitment to transparency and proactive communication with the market.

As the regulatory landscape for online gaming continues to evolve, Nazara Tech's clarification serves to differentiate its business model from those directly involved in real money gaming operations. This distinction could be crucial as the industry navigates potential regulatory changes in the coming months.

Investors and industry observers will likely continue to monitor developments in the online gaming sector, particularly as they relate to regulatory proposals and their potential impacts on companies operating in this space.

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