• SBI Mutual Fund sold a large block of Nazara shares via market deals.
• The stake cut comes amid tighter rules affecting the gaming industry.
• Nazara reported strong revenue growth but slipped into a quarterly loss.

SBI Mutual Fund has reduced its holding in listed gaming company Nazara Technologies by selling shares worth about Rs 216 crore through open-market bulk deals. The sale comes during a volatile period for the online gaming industry, marked by regulatory changes and sharp swings in company earnings.

According to data, SBI Mutual Fund sold nearly 90.1 lakh equity shares of Nazara on December 29 across the NSE and BSE. The shares were sold at an average price of around Rs 240 per share. Before the transaction, the fund held about 5.78 percent of Nazara’s equity. After the sale, its stake dropped to roughly 3.35 percent.

The move follows a series of ownership changes in Nazara this year. Earlier in 2025, Norges Bank, which manages Norway’s sovereign wealth fund, bought about 7.2 lakh Nazara shares through bulk deals. Separately, the estate of late investor Rakesh Jhunjhunwala exited the company through multiple market transactions ahead of major regulatory developments in real-money gaming.

Despite investor exits, Nazara posted strong operating growth. In the second quarter of FY26, the company reported revenue of around Rs 526.5 crore, up over 65 percent from the same period last year. Growth was driven by its core gaming and media businesses.

However, profitability remained under pressure. Nazara reported a net loss of about Rs 34 crore in Q2 FY26, compared with a profit of Rs 16 crore a year earlier. The loss was mainly due to a one-time impairment linked to new regulations in India’s online gaming sector.

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Following the implementation of the Promotion and Regulation of Online Gaming Act, 2025, Nazara wrote down nearly Rs 915 crore from its investment in Moonshine Technology, the parent of PokerBaazi. The company said its standalone net worth remains strong at over Rs 2,200 crore.

In August 2025, Nazara also dropped plans to acquire a further stake in Moonshine Technology, citing the same regulatory changes affecting real-money gaming.

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