Rekha Jhunjhunwala exits Nazara before gaming ban, other investors face sharp losses

New Delhi: Rekha Jhunjhunwala has drawn attention for her timely exit from Nazara Technologies, selling her entire stake just weeks before the government enacted the Online Gaming Bill 2025, which prohibits real-money gaming in India. The sale, executed through a family entity in June, came ahead of regulatory measures that have since triggered significant losses for other major investors, as per the report.

Social media discussions have focused on Jhunjhunwala’s move, while prominent investors including Zerodha co-founder Nikhil Kamath, investor Madhusudan Kela, and Arpit Khandelwal of Plutus Wealth Management have suffered heavy declines as Nazara shares dropped more than 17% over the past five trading sessions.

Regulatory filings indicate that the Estate of Late Rakesh Jhunjhunwala, currently managed by Rekha Jhunjhunwala, held 44,45,120 shares in Nazara, representing a 5.07% stake as of 6 June 2025. Between 9 and 12 June, 17,21,500 shares were sold, followed by a further 27,23,620 shares on 13 June, completing a full exit from the company.

Other investors remain exposed to the fallout. Nikhil Kamath, through Kamath Associates and NKsquared, retained a 3.51% stake as of 30 June, while Madhusudan Kela held 1.18%. Arpit Khandelwal personally held 7.44% and, through Plutus Wealth Management, an additional 10.91% of Nazara, as per the report.

Nazara Technologies, an India-based firm operating in gaming and sports media, has seen its stock come under pressure following the new legislation. Shares closed 4.13% lower at Rs 1,155.75 on Friday, down from Rs 1,205.60 at the previous close. Over the past month, the stock has fallen more than 19%, although it has historically delivered strong returns, with gains of over 37% in the last five years and 21.81% in the past year.