Nazara Technologies share price continued witnessing massive selling pressure for the second consecutive session as the stock crashed 11 per cent in morning trade on Thursday, August 21, on the NSE, a day after falling 13 per cent.
Nazara Tech shares opened at ₹1,178 against its previous close of ₹1,219.40 and plunged 11 per cent to an intraday low of ₹1,085. Around 9:45 AM, the stock, which is held by prominent investors Madhusudan Kela and Zerodha’s Nikhil Kamath, traded 10.28 per cent lower at ₹1,094. In two sessions, the stock has lost 22.5 per cent.
Why is Nazara Tech share price falling?
Nazara Tech and several other gaming stocks have come under pressure after the government introduced a bill to ban online money games in India. The Lok Sabha on August 20 passed the Promotion and Regulation of Online Gaming Bill, 2025, a legislation that bans online money games in India.
The legislation divides gaming into four categories: esports, educational gaming, social and casual gaming, and real-money gaming. Of these, real-money gaming — where users deposit funds and play for cash rewards — has been declared a criminal offence.
Nazara shares are in a free fall even though the company has clarified that it has no direct involvement in real-money gaming (RMG). According to its latest financial report (Q1 FY26), RMG contributed nothing to the company’s revenue or EBITDA.
Nazara has an indirect link to RMG through its 46.07 per cent stake in Moonshine Technologies Pvt. Ltd., the firm which runs PokerBaazi.
However, Nazara doesn’t control the company or own a majority stake in it. It has invested ₹805 crore in Moonshine through a mix of cash and stock and holds convertible shares worth ₹255 crore, which could be converted into equity later.
More pain ahead of Nazara?
Nazara’s meaningful exposure to Moonshine Technology is a key concern. Highlighting the risk, brokerage firm ICICI Securities has downgraded the stock to a “reduce” from an “add” and cut the target price to ₹ 1,100 from ₹1,500 earlier.
“The Lok Sabha has passed a bill aiming to regulate the online gaming sector. In our view, the implementation of the bill would essentially make online Real Money Gaming infeasible in India. While most of the companies operating in the space are unlisted, Nazara Technologies has meaningful exposure in the space via Moonshine Technology (PokerBaazi),” ICICI Securities observed.
“We had earlier assigned a ₹400 valuation to Moonshine in our SoTP. Given the ban on RMG, we now cut this to zero. Nazara’s other verticals, such as gamified early learning, publishing and gaming arcades, remain unaffected. The formal recognition of eSports as a sport could be a structural positive for Nodwin Gaming; however, as of now, the impact on earnings seems limited,” the brokerage firm added.
Harshal Dasani, INVasset PMS business head, pointed out that Nazara holds a 46.07 per cent stake in Moonshine Technologies (PokerBaazi) through equity and convertible preference shares worth over ₹1,000 crore, and the market fears a potential write-down if real-money gaming (RMG) operations are curtailed.
Dasani said the overhang stems more from perception than fundamentals.
“Q1FY26 results reflected steady growth across core verticals, underpinned by improved margins in e-sports and higher user engagement in gamified content. Yet, in the short term, uncertainty around the bill’s implementation and its effect on associate investments could keep volatility high,” said Dasani.
“For long-term investors, Nazara’s diversified, non-RMG revenue base and strong balance sheet offer comfort. Traders, however, may prefer caution until regulatory clarity emerges. Sustained delivery on earnings and reduced noise around Moonshine will be key triggers for sentiment recovery,” said Dasani.
Technical experts believe the stock may remain under pressure as it is trading below its key support of ₹1,220.
“Nazara Technologies has broken below the key support of ₹1,220, slipping towards the ₹1,100 zone, which signals weakness in the near term. The price action indicates that the next meaningful support lies in the ₹1,000–980 range, where the stock may attempt to form a base and stabilise,” said Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers.
“This zone could act as a crucial demand area for long-term investors, but until signs of reversal or accumulation emerge, fresh buying may carry higher risk. Traders should remain cautious and monitor how the stock behaves around the support zone before taking new positions. At present, a wait-and-watch approach is advisable, as clarity on trend direction will emerge only after a stable base is established near the lower levels,” Patel said.
(This is a developing story. Please check back for fresh updates.)
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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