Mumbai: Now that the $4 billion gaming industry is just coming to terms with the impact of losing its primary source of revenue, another storm has started to brew with the industry’s leading listing company Nazara Technologies. The company, once promoted and encouraged by the late stock market bull Rakesh Jhunjhunwala, is seeing a massive drop in its share price, as investors are looking to exit the company due to uncertainty about tis future.
Rakesh’s widow Rekha who inherited his stake in the company, has sold her entire stake by June 2025, netting Rs.334 crore for selling her 7.06% stake in the company. After the Bill was passed, the company has seen its stock price plummet 20% from Rs.1,392 on August 19 to Rs. 1,108 on August 25.
After receiving the news, TMC MP Mahua Mitra tweeted
This is insider trading. Pure & simple. In the US, SEC would do full investigation including subpoenas, phone & digital records. In India, Bhakts applaud while @SEBI_India sleeps. And no – I am not going to live in the US. pic.twitter.com/ml7uSVXaMe
— Mahua Moitra (@MahuaMoitra) August 24, 2025
This is even as other prominent investors in the company , Nikhil Kamath with 1.62% stake and Madhusudhan Kela with 1.18% stake haven’t sold their stakes yet, despite reporting a loss of Rs.58 crore and Rs.42 crore respectively.
Though many other investors agree with Mahua’s allegations, others point out how many ignored the warning signs in the industry, which the government had to address sooner or later. The shares were sold quietly by June 30, before the gaming industry was in the spotlight, others pointed out. Maybe it was her strong presence of mind that worked? Anyway, it doesn’t matter now. That’s the existing investors’ headache now.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
