Nazara share price crashes 7%: Here's how much Zerodha's Nikhil Kamath, ace investor Madhu Kela lost in a day

Nazara share price: A sharp crash in small-cap stock Nazara Technologies burned a hole in the wealth of notable investors like Zerodha's Nikhil Kamath and Madhusudan Kela.

Nazara Technologies stock, erstwhile a part of Rekha Jhunjhunwala's portfolio, crashed 7% in intraday deals today, August 20, following a proposed promotion and regulation of the online gaming bill that is expected to be presented in the Parliament today.

While Rekha Jhunjhunwala exited her entire holding in Nazara Tech by June, it continues to be backed by other notable investors.

Nazara share price hit the day's low of ₹1,302.45 apiece in intraday deals today, with investors losing ₹916 crore in notional wealth.

Meanwhile, ace investors Madhusudan Kela and Nikhil Kamath together lost nearly ₹26 crore in a day.

Madhusudan Kela, who holds 10,96,305 shares, owns 1.18% of Nazara Technologies. He saw his wealth decline by ₹10.84 crore in the gaming company from ₹153.63 crore as of Tuesday's close.

Nikhil Kamath, who, through his firm Kamath Associates, holds 15,04,782 shares, representing a 1.62% stake in the company, saw a wealth erosion of nearly ₹15 crore. Kamath's wealth dropped by ₹14.88 crore from ₹210.87 crore as of the last trading session.

According to a PTI report, the proposed promotion and regulation of online gaming bill, cleared by the Union Cabinet on Tuesday, prohibits online money gaming or its ads, and prescribes imprisonment or fine, or both, for those offering or advertising them.

The bill proposes that any person offering an online money gaming service in violation of the stipulated provisions will face imprisonment of up to three years or a fine that may extend to ₹1 crore, or both. The provisions also stipulate imprisonment of up to two years and or a fine of up to ₹50 lakh, or both, for those indulging in advertisements in contravention of rules.

Also, those engaging in any transaction or authorisation of funds will be liable for up to three years imprisonment, or a fine of up to ₹1 crore or both, according to a PTI report.

While Nazara shares crashed in trade today, the company clarified that it has no direct involvement in real money gaming (RMG). According to its latest financial report (Q1 FY26), RMG contributed nothing to the company’s revenue or EBITDA.

The company’s only indirect link to RMG is through its 46.07% stake in Moonshine Technologies Pvt. Ltd. (which runs PokerBaazi). Since Nazara doesn’t control the company or own a majority stake, Moonshine’s revenue is not included in Nazara’s financial statements. In fact, Moonshine contributed negatively to Nazara’s profits in Q1 FY26, the company said.

Nazara has invested ₹805 crore in Moonshine through a mix of cash and stock, and it also holds convertible shares worth ₹255 crore, which could be converted into equity later.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.

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