Nazara Tech share price declined 11% at intraday on Thursday after it fell over 15% on Wednesday following central government’s proposal for a sweeping ban on all money-based online gaming transactions. Cumulatively the stock is down 20% as of 09:42 a.m. in last two trading sessions.
The decline comes after Nazara Tech’s Nitish Mittersain said that the proposed Online Gaming bill could pose some challenges to the current operating model of Pokerbaazi in India, “We will figure out how to adapt the business going forward,” he told NDTV Profit.
However, the firm had earlier clarified that it has no direct exposure to real money gaming businesses. Nazra Tech, via an exchange filing on Wednesday, said that the contribution to revenue and Ebitda by real money gaming business is nil. They stated that the company’s only indirect exposure to RMG is through its 46.07% stake in Moonshine Tech.
But, late Wednesday afternoon brokerage Prabhudas Lilladher flagged risks to Nazara Technologies’ investment in PokerBaazi and said PokerBaazi contributes nearly 35% to Nazara’s sum-of-the-parts enterprise value.
