Amid post-RMG volatility and a sharp impairment hit, Nazara sees SBI Mutual Fund exit via block deal, even as it pursues aggressive M&A across gaming and media.
SBI Mutual Fund Exits â‚ą108 Cr Stake in Nazara via Block Deal
SBI Mutual Fund has sold 45.09 lakh shares of Nazara Technologies via a block deal on December 29, offloading its stake at an average price of â‚ą240.18/share, per NSE data. The total transaction value stood at â‚ą108.3 Cr, making it one of the largest secondary exits for the gaming major this year.
- The move continues a trend of portfolio churn among institutional investors amid regulatory and valuation headwinds.
- The stock has remained volatile after a major impairment related to real-money gaming (RMG) investments.
“This isn’t about fundamentals alone — the exits are tied to sectoral repricing after the RMG disruption,” said a Mumbai-based equity strategist.
Global Interest Persists: Norges Bank Enters Cap Table
Despite the exit, global institutional interest remains strong. Earlier in 2025, Norges Bank, Norway’s sovereign wealth fund manager, entered Nazara’s cap table, acquiring 7.19 lakh shares worth ~₹70 Cr via bulk deals.
- The contrast in investor activity reflects divergent long-term vs. short-term perspectives on Nazara’s portfolio, which spans beyond RMG.
Rakesh Jhunjhunwala’s Estate Also Exited Earlier This Year
In June 2025, the estate of late investor Rakesh Jhunjhunwala also fully exited Nazara, selling 13 lakh shares at ₹1,225.19/share for ₹159.27 Cr — just ahead of the government’s ban on real-money gaming.
- The exit was well-timed, as Nazara’s stock saw a sharp correction after the regulatory move.
Q2 FY26: One-Time Impairment Drives â‚ą33.9 Cr Loss
Nazara posted a ₹33.9 Cr net loss in Q2 FY26, reversing a ₹16.2 Cr profit YoY, largely due to the ₹914.7 Cr impairment on its stake in PokerBaazi — whose value was slashed to ₹96.5 Cr.
- The company clarified that this was a non-recurring, exceptional item, and its standalone net worth remains â‚ą2,236 Cr.
“We’ve taken the hit upfront to clean the slate. Our core business remains strong,” Nazara said in its investor note.
Operational Growth & M&A Activity Continue
Despite RMG turbulence, Nazara’s operating revenue surged 65% YoY to ₹526.5 Cr in Q2 FY26. The company is actively diversifying its portfolio, shifting focus to mobile gaming, esports, adtech, and sports media.
Recent strategic moves:
- Acquired full control of Absolute Sports (Sportskeeda’s parent).
- Other acquisitions include Fusebox Games, STAN, Ninja Global, Paperboat, Freaks 4U, and Circle of Games.
“Nazara is now positioning itself as a diversified digital entertainment conglomerate — not just a gaming play,” noted a sector analyst.
TL;DR:
SBI Mutual Fund sold ₹108.3 Cr worth of Nazara shares in a block deal, adding to a year of institutional reshuffling amid regulatory headwinds. Despite posting a ₹33.9 Cr Q2 loss due to a PokerBaazi impairment, Nazara’s core business is growing, with 65% YoY revenue growth and an aggressive M&A strategy across gaming and digital media.
