Late Rakesh Jhunjhunwala’s Estate Exits Nazara

The estate of late investor Rakesh Jhunjhunwala has exited Nazara by divesting its remaining 5.07% shareholding in the online gaming major via open market transactions.

As per BSE data, the estate sold 13 Lakh shares at INR 1,225.19 each for a sum of INR 159.27 Cr. However, in a filing with the exchanges, Nazara said that the estate, in total, dumped 27.23 Lakh shares on June 13 to exit the gaming company.

Nazara informed the exchanges that the estate held around 5.07% stake, or 44,45,120 shares, in the company as of June 6. Subsequently, the estate sold 17.21 Lakh shares (or 1.96% stake) between June 9 and June 12. Thereafter, the estate dumped another 27.23 Lakh shares on June 13.

“As on date there is no shareholding of the Estate of Late Mr Rakesh Jhunjhunwala in Nazara Technologies Ltd.,” the filing read. 

This follows Rekha Jhunjhunwala,  the wife and executor of the estate of late Rakesh Jhunjhunwala, offloading an additional 13.1 Lakh shares between June 2 and 5 and another 4.3 Lakh shares on June 6. In total, she sold more than 61 Lakh shares in the listed gaming major in the month of June. 

Sources told news agency PTI that the exit is estimated at nearly INR 770 Cr, translating into a four-fold return for the estate of the late billionaire investor. 

It is pertinent to note that the late investor invested INR 180 Cr in Nazara back in 2017-18. The gaming company was the sole new-age tech company in his portfolio, which also comprised the likes of Tata Communications, Titan Company, Star Health, Federal Bank, among others. 

Notably, the estate has dumped its stake in Nazara at a time when the online gaming major is witnessing a significant shift in its shareholding. Just last month, the Competition Commission of India (CCI) approved a proposal by Axana Estates LLP, Plutus Wealth Management LLP and Junomoneta Finsol to acquire a 26% stake in the gaming major. 

The open offer will see the acquirers buy 2.4 Cr shares of the listed gaming company at INR 990 apiece, translating to a total sum of INR 2,384.2 Cr. 

For context, Axana Estates LLP is owned by Arpit Khandelwal (who already owns 7.87% stake in Nazara and is the managing partner of Plutus), CaratLane founder Mithun Sacheti and his brother Siddharth Sacheti. Khandelwal and Plutus Investments hold stakes in Junomoneta, which owned 1.8% stake in Nazara at the end of March quarter. 

The rejig of the Nazara’s cap table comes at a time when shares of the online gaming major have been on an upswing. While the stock has surged 42.47% on the BSE in the past three months, it is up nearly 31% on a year-to-date (YTD) basis. 

Shares of the company have been on the rise on the back of its broader diversification play, which has seen the company acquire a host of new businesses like Pokerbaazi, Kiddopia, Smaaash, among others, in the past year. 

Meanwhile, on the financial front, Nazara managed to remain in the black and clocked a profit of INR 51 Cr in the fiscal year 2024-25 (FY25), down 32% from INR 74.8 Cr in the previous year. Meanwhile, operating revenue rose 43% year-on-year (YoY) to INR 1,623.9 Cr in FY25.

Shares of the company closed Friday’s trading session 6.49% higher at INR 1327.85 on the BSE.