In June 2025, star investor Rekha Jhunjhunwala orchestrated a full exit from Nazara Technologies, well ahead of the government’s sweeping Online Gaming Bill, effectively insuring her portfolio against losses exceeding ₹334 crore. Her move now stands out as a masterstroke of foresight, given the sharp 18% fall in the company’s shares following the regulatory overhaul www.ndtv.comThe Economic Times+1.
A Prudent Exit Amid Brewing Regulatory Storm
By March 2025, Jhunjhunwala held a 7.06% stake in Nazara—translating to about 61.8 lakh shares. On June 13, leveraging bulk deals on both BSE and NSE, she divested her entire holding—selling approximately 13 lakh shares on BSE and 14.2 lakh on NSE—at an average price of roughly ₹1,225 per share, realizing close to ₹334 crore www.ndtv.comThe Economic Timesmint.
This move also signified the final chapter for the late Rakesh Jhunjhunwala’s association with Nazara, as his 10.82% stake was inherited by his wife and now fully exited.
In hindsight, the timing was impeccable. Following the passage of the Promotion and Regulation of Online Gaming Bill, 2025, which banned real-money gaming, Nazara’s shares plunged—about 11% on Thursday, following a 10% drop the previous day, culminating in a nearly 21% two-day fall. Over the past week, shares declined nearly 18% ReutersThe Economic Timeswww.ndtv.comFacebookmint.
Other Investors Stay On, Caught in the Downturn
While Jhunjhunwala exited, other notable investors such as Madhusudan Kela and Nikhil Kamath held onto their stakes. Kela retained 1.18% (~10.96 lakh shares), and Kamath—via Kamath Associates—held about 1.62% (~15.04 lakh shares) The Economic TimesDalal Street JournalThe Economic Times.
The continued exposure reflects divergent risk assessments among top investors. As regulatory clouds gathered, these shareholders were increasingly vulnerable to the market’s bearish response.
Nazara’s Defense & Strategic Positioning
Nazara attempted to assuage investor concerns, clarifying that it had no direct exposure to real-money gaming (RMG) and that its minority interest in Moonshine Technology (owner of PokerBaazi) did not feed into its revenue streams. The company emphasized that RMG contributed nothing to Q1 FY26 revenues and foresaw no material impact to its earnings or EBITDA.
Despite these assurances, the regulatory link caused investor sentiment to sour sharply, prompting brokerages like ICICI Securities to downgrade the stock—slashing its target price from ₹1,500 to ₹1,100 and assigning zero value to its Moonshine investment The Economic TimesThe Financial Express.
Reaction & Takeaways
On social media, Jhunjhunwala’s sale sparked a debate on whether elite investors benefit from privileged insights. Posts ranged from criticism to defense: some viewed it as insider advantage, while others saw it as prudent management of market risk Storyboard18mint.
Long-term Perspective
Nazara remains a high-performing stock in the long run—upwards of 37% over five years and around 22% in the last year for existing holders.
Meanwhile, Jhunjhunwala continues to be a heavyweight in India’s investment landscape, with disclosed holdings across 25 companies valued at nearly ₹38,918 crore www.ndtv.comDalal Street Journal.
Rekha Jhunjhunwala’s June 2025 exit from Nazara Tech wasn’t just luck—it was calculated. Anchored in timely execution and sharp regulatory insight, it shielded her portfolio from potential losses exceeding ₹334 crore. As regulators and markets evolve, such decisions underline the premium placed on strategic agility in investing.
