Image Source : Mint
In a strategic move that has caught the attention of market watchers, star investor Rekha Jhunjhunwala has fully exited her stake in Nazara Technologies, a smallcap gaming and sports media company backed by Nikhil Kamath and Madhusudan Kela. The exit, completed in mid-June 2025, comes after a remarkable three-year run that delivered a 111 percent return on investment. This newsletter unpacks the details of the transaction, the company’s performance, and what it means for retail and institutional investors.
Key Highlights from the Exit
- Rekha Jhunjhunwala sold her entire 7.06 percent stake in Nazara Technologies
- The sale involved 27 lakh shares across BSE and NSE on June 13, 2025
- Average sale price: ₹1,225.19 on BSE and ₹1,225.63 on NSE
- Total deal value: approximately ₹334 crore
- Nazara stock has surged 40 percent over the past year and 31.81 percent year-to-date
The Transaction Breakdown
Rekha Jhunjhunwala inherited a 10.82 percent stake in Nazara Technologies from her late husband, legendary investor Rakesh Jhunjhunwala. As of March 2025, she held 61,83,620 shares, representing a 7.06 percent stake. On June 13, she executed bulk deals to offload 13 lakh shares on the BSE and 14 lakh on the NSE, effectively reducing her holding to zero.
Earlier in June, she had sold another 17.38 lakh shares, generating ₹218 crore. The cumulative exit value stands at ₹552 crore, making it one of the most profitable divestments in her portfolio this year.
Nazara Technologies: Performance Snapshot
Nazara Technologies has emerged as a strong player in India’s digital entertainment space, with interests spanning esports, mobile gaming, and interactive sports media. The company’s fundamentals have supported its stock rally:
- FY25 net profit: ₹87 crore, up 22 percent year-on-year
- FY25 revenue: ₹1,624 crore, a 43 percent increase
- EBITDA: ₹153 crore, highest in company history
- Share price as of August 2: ₹1,327.85, near a four-year high
The stock has significantly outperformed the broader market, with the Sensex gaining just 4 percent in the same period.
Remaining Stakeholders and Market Sentiment
Despite Jhunjhunwala’s exit, Nazara Technologies continues to enjoy backing from prominent investors:
- Madhusudan Kela holds 10,96,305 shares, or 1.18 percent
- Nikhil Kamath, through Kamath Associates and NKSquared, owns 15,04,782 shares, or 1.62 percent
Analyst sentiment remains mixed:
- 40 percent recommend a “Buy”
- 40 percent suggest “Sell”
- 20 percent advise “Hold”
The company’s independent directors recently endorsed a ₹990 open offer as fair and reasonable, further reinforcing investor confidence.
Strategic Implications of the Exit
Rekha Jhunjhunwala’s exit from Nazara Technologies signals a strategic portfolio rebalancing rather than a loss of faith in the company. With her net worth rising to ₹42,252.90 crore in June 2025—a 149 percent jump from March—she may be reallocating capital toward new opportunities or consolidating gains from high-performing assets.
For retail investors, her exit may prompt short-term volatility, but the company’s strong fundamentals and continued institutional backing suggest long-term stability.
Conclusion: A Profitable Farewell, Not a Red Flag
Rekha Jhunjhunwala’s complete divestment from Nazara Technologies marks the end of a highly successful investment chapter. With over ₹550 crore realized and a triple-digit return over three years, the move reflects disciplined portfolio management. For Nazara, the exit is not a setback but a testament to its growth story—one that continues to attract seasoned investors like Kela and Kamath.
Sources: Economic Times, CNBC TV18, India Infoline, Trendlyne
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