Nazara Technologies Block Deal: Rakesh Jhunjhunwala’s Estate Offloads ₹159 Crore Shares
Nazara Technologies, one of India’s leading gaming and esports companies, made headlines on June 13, 2025, as a massive block deal took place involving an entity linked to the late market mogul Rakesh Jhunjhunwala. The news created a buzz in Dalal Street after the ‘Estate of Late Mr. Rakesh Jhunjhunwala’ sold 13 lakh shares worth ₹159 crore in the smallcap gaming firm.
What surprised market watchers was not the offloading itself — but the bullish market response that followed. Instead of falling, Nazara Technologies’ share price surged by over 6% to close at ₹1,327.80, hitting a 52-week high of ₹1,341.80 during intraday trading. The transaction price per share was ₹1,225.19, a 2% discount over Thursday’s close of ₹1,246.80.
Who Sold the Shares and Why?
The shares were sold by the entity representing Rakesh Jhunjhunwala’s estate. Following his demise in August 2022, his portfolio — one of the most followed in the Indian stock market — has been managed by his wife Rekha Jhunjhunwala. This block deal appears to be part of a strategic rebalancing of assets. Yet, the move did not shake investor confidence, a rare occurrence in such large-scale offloading scenarios.
Nazara Technologies Share Price Today
Nazara shares closed at ₹1,327.80 on the NSE on June 13, 2025, up ₹81 or 6.5%. The stock saw strong buying interest even after the block deal, defying expectations of a sell-off. The share price movement reflected solid optimism around Nazara’s financial performance and growth potential in the rapidly expanding Indian gaming market.
Nazara Technologies: Company Overview
Founded in 1999, Nazara Technologies operates in three primary segments:
- 🎮 Online Gaming
- 🏆 Esports (including Nodwin Gaming)
- 📱 Ad-Tech and Interactive Learning Platforms
The company has positioned itself as a major player in India’s booming gaming ecosystem. With a current market capitalisation of over ₹11,600 crore, Nazara has gained traction as a top smallcap stock to watch in 2025.
Q4 FY25 Results: Massive Growth Across Key Metrics
Backing the investor confidence is a stellar performance in Q4 FY25. Nazara Technologies reported a 90% year-on-year (YoY) growth in consolidated net profit, rising to ₹16 crore from ₹8 crore in Q4 FY24. Revenue from operations also grew significantly, surging 95% YoY to ₹520 crore from ₹266 crore.
Sequentially, there was a dip in profit and revenue. PAT declined by 40% from ₹26 crore in Q3 FY25, and revenue fell by 3% compared to ₹535 crore in the previous quarter. However, the annual performance paints a much stronger picture.
Annual Performance FY25 Highlights:
- Total Revenue: ₹1,624 crore
- EBITDA: ₹153.5 crore (Highest ever)
- Core Gaming EBITDA Margin: 19.9%
- Overall EBITDA Margin: 9.4%
These results highlight the strength of Nazara’s business fundamentals and scalability of its gaming-focused model.
Investor Sentiment: Why the Market is Bullish
Typically, a high-value block deal by a major investor results in short-term market corrections. But Nazara defied the norm. The share price not only held steady but climbed higher. Here’s why investors stayed optimistic:
- Strong Annual Earnings: Nazara delivered record revenue and EBITDA, signaling robust operations.
- Gaming Sector Boom: India’s gaming industry is expected to grow at over 25% CAGR in the next 3 years.
- Global Expansion: Nazara continues to invest in international gaming assets, strengthening its presence globally.
- High Promoter and Institutional Confidence: Institutional investors remain net buyers of Nazara stock.
The rise in stock price post-block deal confirms that the market is confident in Nazara’s long-term growth trajectory.
Performance vs NIFTY: A Clear Winner
In a market where large caps are struggling, Nazara Technologies has clearly outperformed benchmarks. Over the past 12 months, Nazara delivered 55% returns compared to just 6% from the Nifty 50. In 2025 alone, the stock has already gained over 31%, while the index has inched up by just 4%.
This consistent outperformance cements Nazara’s position as one of the best smallcap picks in the Indian stock market in 2025.
Rakesh Jhunjhunwala’s Portfolio: Still Influential
Even after his passing, the legendary investor Rakesh Jhunjhunwala’s portfolio continues to shape market trends. His estate currently holds stakes in over 27 listed companies with a total estimated value of ₹64,546.8 crore, as per Trendlyne data.
Nazara Technologies was one of his early bets in the tech space, and the stock has validated that belief with its consistent financial and market performance. The recent sale by his estate may be administrative or portfolio-related, but it doesn’t take away from Nazara’s long-term potential.
Market Experts Remain Optimistic
Leading analysts believe that Nazara Technologies is still in its early innings. With mobile-first gaming on the rise and esports gaining mainstream attention in India, Nazara is well-positioned to dominate this space. Brokerages have raised their target prices post-Q4 results, highlighting improved operational margins and revenue visibility for FY26.
The company’s strategic acquisitions and focus on monetising user bases across regions make it a compelling stock for growth-focused investors. Nazara’s core gaming business is now contributing significantly to its EBITDA, proving that scale can be profitably managed in this space.
Conclusion
The ₹159 crore block deal by Rakesh Jhunjhunwala’s estate may have raised eyebrows, but Nazara Technologies’ strong price action and fundamentals quickly stole the show. The stock continues to attract interest from both retail and institutional investors, driven by a high-growth sector and stellar performance in FY25.
For investors seeking exposure to India’s digital and gaming economy, Nazara Technologies remains a stock worth watching. With favorable market dynamics, improving margins, and strong leadership, the future looks bright for this gaming giant.
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