SBI Mutual Fund sells Rs 216 crore stake in gaming company Nazara Technologies

SBI Mutual Fund has trimmed its holding in Nazara Technologies through large open-market bulk deals, even as the listed gaming major reported strong operating growth alongside a sharp profit swing amid regulatory-linked impairments.

According to exchange data, SBI Mutual Fund sold a total of 90.09 lakh equity shares of Nazara on December 29, across both the NSE and BSE, at an average price of around Rs 240 per share.

The combined transaction was valued at approximately Rs 216 crore.

Prior to the sale, SBI Mutual Fund held about 5.78% of Nazara’s paid-up equity. Following the transaction, its stake declined by roughly 2.43 percentage points to about 3.35%.

Earlier in 2025, Norges Bank, which manages Norway’s sovereign wealth fund, acquired 7.19 lakh shares of Nazara through bulk deals at an average price of around Rs 970 per share, valuing the purchase at close to Rs 70 crore. Separately, the estate of late investor Rakesh Jhunjhunwala exited the company earlier in the year.

The exit was executed through multiple market transactions, including the sale of about 27.23 lakh shares on June 13, at prices around Rs 1,225 per share, for total proceeds of roughly Rs 330–335 crore, ahead of regulatory developments affecting the real-money gaming segment. The latest stake sale comes against the backdrop of a volatile quarter for Nazara.

In Q2 FY26, the company reported operating revenue of approximately Rs 526.5 crore, up 65.1% from Rs 318.9 crore in the corresponding quarter last year, reflecting continued growth across its core gaming and media businesses.

However, the company reported a net loss of about Rs 34 crore in Q2 FY26, compared with a net profit of roughly Rs 16 crore in Q2 FY25.On a half-yearly basis, Nazara’s profitability weakened sharply. For H1 FY26, the company reported a significantly lower consolidated profit from continuing operations compared with H1 FY25, primarily due to exceptional items and regulatory-driven adjustments.

The loss was largely driven by a one-time, non-recurring impairment linked to regulatory changes in India’s online gaming sector. Following the enactment of the Promotion and Regulation of Online Gaming Act, 2025, Nazara recognised an aggregate impairment of approximately Rs 914.7 crore in the value of its investment in Moonshine Technology Private Limited, the parent company of online poker platform PokerBaazi. As a result, the carrying value of the investment was reduced to about Rs 96.5 crore.

The company stated that its standalone net worth remained robust at around Rs 2,236 crore after accounting for the impairment.

In August 2025, Nazara formally called off its plans to acquire an additional minority stake in Moonshine Technology, citing the same regulatory changes governing online and real-money gaming in India.