Rekha Jhunjhunwala's strategic exit: Nazara Technologies and the impact of the online gaming ban
Introduction
In June 2025, Rekha Jhunjhunwala sold her entire stake in Nazara Technologies. The move came just months after the government banned online real-money gaming. As a result, Nazara's stock saw a massive drop. This strategic exit protected her portfolio from losses. In contrast, investors such as Madhusudan Kale and Nikhil Kamath maintained their stake.
Key Points
1. Rekha Jhunjhunwala's stake in Nazara Technologies
As of March 2025, she owned about a 7% stake in the company.
This investment had been a part of her portfolio for a long time and was considered a reliable bet in the market.
2. Strategic sale in June 2025
She sold about 30 lakh shares in the first two weeks of June.
This sale fetched them over ₹370 crore.
The sale took place at an average price of around ₹1,250–₹1,300.
3. Immediate market reaction
In the initial days, the stock hit a 52-week high and touched ₹1,340.
Investors assumed it to be normal profit-booking, and there was no major negative reaction till then.
4. Government ban on online gaming
In August 2025, the government passed the "Online Gaming Regulation Bill."
The ban on real-money gaming (RMG) led to panic in the market.
Nazara Technologies' stock fell by nearly 20% in two days.
5. Stance of other big investors
Madhusudan Kela and Nikhil Kamath maintained their stake.
They believed that this setback could be temporary and the fundamentals of the company are strong.
However, in the short term, they faced a huge depreciation in value.
6. Strategic Analysis and Learnings
Rekha Jhunjhunwala's exit was a proactive strategy made by anticipating potential regulatory risks.
This move shows how important it is to take timely decisions.
On the other hand, the confidence of other investors shows that different approaches can also prove their value in the long run.
Conclusion
Rekha Jhunjhunwala saved her portfolio from losses by exiting Nazara at the right time.
The government's online gaming ban proved to be a big shock to the market, and Nazara's stock fell sharply.
Madhusudan Kela and Nikhil Kamath adopted a different investment approach by maintaining their stake.
The lesson for investors from this entire incident is that regulatory environment, policy changes, and timely decisions are very important for any investment strategy.
