ET NEWS

Nazara Technologies has slumped 18.25% in just three trading sessions, hitting a low of Rs 1,145.55 on the BSE today, as worries around the government’s new online gaming regulations sparked heavy selling. The steep fall has left investors wondering if the stock’s slide is set to deepen or if it’s an opportunity for long-term buyers.The selloff comes after the Union Cabinet cleared the Promotion and Regulation of Online Gaming Bill, 2025, which will be tabled in Parliament for debate. The bill seeks to regulate gaming platforms with monetary incentives, citing concerns around mental health, money laundering, and fraudulent transactions.The tighter framework is expected to bring greater compliance requirements, potentially denting sentiment across the digital gaming industry.The pressure on Nazara has intensified even though the company clarified that the new rules will have no direct impact on its revenues or EBITDA.According to Harshal Dasani, Business Head at INVasset, “Nazara Technologies is facing sustained selling pressure despite clarifying that the newly passed Promotion and Regulation of Online Gaming Bill, 2025 will have no direct revenue or EBITDA impact. The stock slipped nearly 15% in recent sessions as investor sentiment soured on the broader online gaming space.”Adding to the intrigue is the role of ace investors. Rekha Jhunjhunwala, who once held a 7.06% stake, fully exited her investment in June 2025, cashing out nearly Rs 334 crore at an average price of Rs 1,225 per share.Her exit brought an end to the Jhunjhunwala family’s association with the stock.In contrast, marquee names like Madhusudan Kela and Zerodha co-founder Nikhil Kamath continue to hold their stakes, signalling confidence in Nazara’s long-term prospects.Market fears have largely centered on Nazara’s associate company Moonshine Technologies, which operates PokerBaazi. Nazara holds a 46.07% stake in Moonshine through equity and preference shares worth over Rs 1,000 crore, raising worries about a potential write-down if real-money gaming takes a hit.Dasani notes, however, that the overhang is “more from perception than fundamentals,” as real-money gaming contributes nothing to Nazara’s consolidated revenues. Instead, the company’s growth is anchored in e-sports, adtech, gamified learning, and publishing.What should investors do?Analysts suggest that traders may need to exercise caution until regulatory clarity emerges, as volatility could persist in the short term.But for long-term investors, Nazara’s diversified revenue base and strong balance sheet provide comfort.“Sustained delivery on earnings and reduced noise around Moonshine will be key triggers for sentiment recovery,” Dasani adds.Also read: Is Rs 4 crore enough for retirement corpus? Gurmeet Chadha gives simple calculation metric(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Avanse Financial Services Ltd., an Indian education financing provider backed by private equity firm Warburg Pincus, is considering delaying its initial public offering as demand for loans slows due to stricter US visa rules, according to people familiar with the matter.The Mumbai-based company might wait for the overseas loan market to improve before resuming work on the potential share sale, the people said, asking not to be identified because the information is private. Deliberations are ongoing and no final decision has been made, the people said.A representative for Avanse didn’t respond to requests seeking comment, while Warburg Pincus declined to comment.Avanse provides financing to students at more than 1,650 educational institutions in about 50 countries, offering customized loans for Indians pursuing undergraduate and postgraduate programs, according to its website.Almost 57% of the company’s international loan portfolio was to students who chose to study in the US as of the end of March 2024, according to the draft prospectus filed with the regulator.The Trump administration’s aggressive tightening of immigration policies and policing has led to a plunge in student arrivals to the US, with numbers from India hit particularly hard — dropping 46% in July from a year earlier, data from the International Trade Administration show. Total arrivals on student visas last month decreased 28% to just under 79,000.Avanse had planned to raise about 10 billion rupees ($115 million) in an IPO, while existing investors including Warburg Pincus, Kedaara Capital and International Finance Corp. planned to sell shares worth about 25 billion rupees, company filings show. Avanse submitted draft papers with the Securities and Exchange Board of India in July 2024 and got approval in October.IFC first invested in Avanse in 2013, while Warburg Pincus bought a 80% stake from Wadhawan Global Capital in 2019. Kedaara invested in 2023.On Thursday, Avanse said it secured a multi-currency syndicated loan equivalent to $200 million, which it said would help to diversify funding sources and strengthen ties with domestic and global lenders.