Nazara shares tank 5%; Moonshine ceases real-money online gaming ops
Nazara Technologies shares fell 5 per cent to hit a low of Rs 1,145.55 on BSE. The scrip had fallen 1.31 per cent on Thursday and 12.82 per cent on Wednesday.
- Aug 22, 2025,
- Updated Aug 22, 2025 1:51 PM IST
Online gaming platform Nazara Technologies Ltd continued its downward journey for the third straight session on Friday, as a couple of brokerages cut their target prices on the stock amid a ban on real money gaming. Nazara shares fell 5 per cent to hit a low of Rs 1,145.55 on BSE. The scrip had fallen 1.31 per cent on Thursday and 12.82 per cent on Wednesday.
Harshal Dasani, Business Head of INVasset said Nazara Technologies is facing sustained selling pressure despite clarifying that the newly passed Promotion and Regulation of Online Gaming Bill, 2025 will have no direct revenue or Ebitda impact.
Dasani said Nazara holds a 46.07 per cent stake in Moonshine Technologies (PokerBaazi) through equity and convertible preference shares worth over Rs 1,000 crore, and the market fears a potential write-down if real-money gaming (RMG) operations are curtailed.
In the afternoon, Nazara came out with a press reelase saying: "We wish to inform that, as a matter of abundant caution and in due respect of the Government’s mandate, Moonshine Technologies Private Limited (“Moonshine/Pokerbaazi”), an associate company in which Nazara Technologies Limited (the “Company”) holds a 46.07% stake, has ceased offering real money online gaming operations. The Company will evaluate the future course of action following the enactment of the Bill."
Nazara said it will evaluate the future course of action following the enactment of the bill.
"The overhang stems more from perception than fundamentals. Q1 FY26 results reflected steady growth across core verticals, underpinned by improved margins in e-sports and higher user engagement in gamified content. 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," Dasani said. ICICI Securities said the implementation of the bill would essentially make online Real Money Gaming infeasible in India.
"We had earlier assigned Rs 400 valuation to Moonshine in our SoTP (link). 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, impact on earnings seems limited. Downgrade to REDUCE," it said.
While the bill is facing pushback from the industry and other stakeholders, JM Financial believes Nazara remains largely insulated with the only impact being a complete writedown of its investment in Pokerbaazi. "This could impact our Nazara valuation by c.20 per cent (attributable to its stake in Pokerbaazi). In the interim, we maintain ‘HOLD’ on Nazara with June 2026 target price of Rs 1,370," it said.
Online gaming platform Nazara Technologies Ltd continued its downward journey for the third straight session on Friday, as a couple of brokerages cut their target prices on the stock amid a ban on real money gaming. Nazara shares fell 5 per cent to hit a low of Rs 1,145.55 on BSE. The scrip had fallen 1.31 per cent on Thursday and 12.82 per cent on Wednesday.
Harshal Dasani, Business Head of INVasset said Nazara Technologies is facing sustained selling pressure despite clarifying that the newly passed Promotion and Regulation of Online Gaming Bill, 2025 will have no direct revenue or Ebitda impact.
Dasani said Nazara holds a 46.07 per cent stake in Moonshine Technologies (PokerBaazi) through equity and convertible preference shares worth over Rs 1,000 crore, and the market fears a potential write-down if real-money gaming (RMG) operations are curtailed.
In the afternoon, Nazara came out with a press reelase saying: "We wish to inform that, as a matter of abundant caution and in due respect of the Government’s mandate, Moonshine Technologies Private Limited (“Moonshine/Pokerbaazi”), an associate company in which Nazara Technologies Limited (the “Company”) holds a 46.07% stake, has ceased offering real money online gaming operations. The Company will evaluate the future course of action following the enactment of the Bill."
Nazara said it will evaluate the future course of action following the enactment of the bill.
"The overhang stems more from perception than fundamentals. Q1 FY26 results reflected steady growth across core verticals, underpinned by improved margins in e-sports and higher user engagement in gamified content. 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," Dasani said. ICICI Securities said the implementation of the bill would essentially make online Real Money Gaming infeasible in India.
"We had earlier assigned Rs 400 valuation to Moonshine in our SoTP (link). 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, impact on earnings seems limited. Downgrade to REDUCE," it said.
While the bill is facing pushback from the industry and other stakeholders, JM Financial believes Nazara remains largely insulated with the only impact being a complete writedown of its investment in Pokerbaazi. "This could impact our Nazara valuation by c.20 per cent (attributable to its stake in Pokerbaazi). In the interim, we maintain ‘HOLD’ on Nazara with June 2026 target price of Rs 1,370," it said.