Nazara Technologies Hits 52-Week High After Block Deal

Nazara Technologies Soars to 52-Week High After ₹190 Crore Block Deal; Stock Up 42% in 3 Months

Mumbai, June 13, 2025: Shares of Nazara Technologies Ltd, one of India’s leading gaming and e-sports companies, surged sharply on Friday after a large block deal on the exchanges fueled a rally in investor sentiment.

The stock gained as much as 7.4% intraday to hit a new 52-week high of ₹1,340 on the Bombay Stock Exchange (BSE), before closing the session at ₹1,327.85, up 6.5% from the previous close. This marks the stock’s biggest single-day gain in 21 weeks.

The rally comes amid growing investor interest in gaming and digital entertainment stocks, driven by rising revenues, overseas expansion, and positive sentiment in the broader midcap and tech space.

Block Deal Triggers Buying Frenzy

The primary catalyst behind Friday’s price action was a large block deal that took place earlier in the day.

As reported by CNBC-TV18, around 15.42 lakh shares of Nazara Technologies were exchanged in the transaction, representing approximately 1.77% of the company’s total equity. The block deal was valued at ₹190 crore, executed at an average price of ₹1,227.50 per share.

The identity of the buyer or buyers involved in the transaction has not been publicly disclosed. However, such high-value trades often indicate strong institutional interest, possibly from domestic mutual funds, foreign portfolio investors (FPIs), or long-term strategic investors betting on the company’s growth trajectory.

The heavy trading volume and price jump indicate that the deal may have sparked a broader buying wave among retail and institutional investors anticipating further upside.

Rekha Jhunjhunwala Trims Stake Ahead of Deal

The block deal follows a significant stake sale by Rekha Jhunjhunwala, wife of the late veteran investor Rakesh Jhunjhunwala, who had been an early and prominent backer of Nazara Technologies. Between June 2 and June 6, she sold 17.38 lakh shares of the company, amounting to around 2% of Nazara’s equity.

Following this transaction, Rekha Jhunjhunwala’s stake in Nazara declined from 7.05% to 5.07%, according to exchange filings.

While the timing of her exit raised eyebrows among some market participants, others interpreted it as a routine portfolio adjustment, especially as the stock has delivered robust returns in recent months.

Rakesh Jhunjhunwala had invested in Nazara Technologies well before its IPO and held over 10% stake as of June 2022.

His early investment played a crucial role in enhancing the company’s visibility and credibility among retail investors and the broader market.

Stock Performance: Riding High on Momentum

Nazara Technologies has emerged as one of the best-performing stocks in the midcap tech space, gaining over 42% in the past three months.

This sharp rally has been fueled by a combination of positive earnings, strategic acquisitions, and growing investor appetite for gaming and entertainment-related plays.

With today’s closing price of ₹1,327.85, the stock has comfortably surpassed brokerage targets. For instance, Prabhudas Lilladher, after the March 2025 quarter results, had assigned a ‘Hold’ rating with a target price of ₹1,241, a level that has now been decisively breached.

The company’s current market capitalization stands at approximately ₹11,600 crore, solidifying its position among India’s most valuable gaming companies.

Q4 FY25 Results: Strong Growth in Profit and Revenue

Nazara Technologies reported an impressive set of numbers for the January–March 2025 quarter (Q4 FY25). The company posted a net profit of ₹4 crore, a massive improvement compared to just ₹18 lakh in the same quarter last year.

Even more impressive was the revenue growth. Consolidated revenue from operations nearly doubled to ₹520 crore, representing a year-on-year growth of 95% from ₹266 crore in Q4 FY24.

This stellar performance was driven by higher monetization across its gaming portfolio, improved ad revenue, and traction in its e-sports and gamified learning verticals.

The growth underscores the scalability of Nazara’s diversified business model, which spans mobile gaming, gamified learning, e-sports, and ad-tech, both in India and abroad.

Strategic Expansion: Acquisition of Curve Digital Completed

Nazara’s robust performance is also being supported by its strategic international expansion. On June 12, the company announced that its UK-based subsidiary had completed the acquisition of 100% equity in Curve Digital Entertainment Ltd. (CDEL).

The acquisition, valued at approximately £1.91 million (around ₹223 crore), will significantly enhance Nazara’s presence in the global premium gaming segment.

CDEL and its subsidiaries specialize in publishing and developing high-quality independent games, giving Nazara access to established IPs and global distribution channels.

As per the exchange filing, CDEL has now become a wholly-owned subsidiary of Nazara UK, which itself is a step-down subsidiary of the Indian parent.

Additionally, CDEL’s seven subsidiary companies—including Runner Duck Games, IronOak Games Inc., and Curve Games Development One Limited—have also become part of the Nazara group structure.

Nazara said the acquisition would bolster its global publishing capabilities and strengthen its foothold in Western markets.

Investor Outlook: Opportunities and Risks Ahead

Nazara Technologies appears to be in a sweet spot, benefitting from the global gaming boom and increased investor focus on digital-first businesses.

The company’s focus on diversification, both geographically and across verticals, has helped reduce dependence on any single revenue stream.

However, valuations have started to look stretched after the recent rally. While strong fundamentals and international growth potential remain key positives, investors may need to weigh the high price-to-earnings (P/E) ratio, integration risks from recent acquisitions, and competitive pressures in the mobile gaming and ad-tech segments.

That said, the strong institutional interest, rising quarterly performance, and long-term potential of gaming as a secular growth theme may continue to support Nazara’s upward trajectory.

Final Thoughts

Nazara Technologies’ stock performance on June 13 was a clear signal of renewed market confidence.

The ₹190 crore block deal, coupled with its 42% rally over the past quarter, strategic global acquisitions, and rapidly growing revenues, positions the company as a frontrunner in India’s listed gaming space.

While short-term volatility may emerge due to profit booking and broader market dynamics, Nazara’s fundamentals and growth strategy suggest it remains a stock to watch in the digital entertainment sector.