Nazara Technologies has announced the termination of its proposed acquisition of a 0.96% equity stake in Moonshine Technology Private Limited, valued at ₹15.90 crore. This decision follows the enforcement of the Promotion and Regulation of Online Gaming Act, 2025, which bans real-money online games such as poker across India.
On August 31, 2025, Nazara Technologies issued a Notice of Termination to I3 Interactive Inc., one of the sellers of Moonshine Technology shares, citing a material adverse effect under the Share Purchase Agreement (SPA). The enactment of the Promotion and Regulation of Online Gaming Act, 2025, on August 22, 2025, effectively prohibits real money online gaming in India, impacting Moonshine’s core operations.
Under the SPA, such a regulatory change qualifies as a material adverse event, giving Nazara the right to terminate its obligation to acquire the remaining 38,073 shares representing 0.96% of Moonshine’s equity.
The SPA, originally signed on September 12, 2024, with I3 Interactive Inc. and other sellers, will stand terminated 30 days from the date I3 Interactive receives the termination notice, unless the issue is resolved earlier. The termination ends all rights and obligations related to this transaction, except as specifically stated in the agreement.
This decision only applies to I3 Interactive Inc.'s portion of the deal, not impacting prior share acquisitions under the same SPA.
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The terminated acquisition involved 38,073 fully paid-up equity shares with a face value of ₹10 each. The ₹15.90 crore consideration was agreed upon before the legal shift, making the deal financially and operationally unviable under the current law. This stake represented a minor yet strategic shareholding in Moonshine Technology, a company involved in real-money gaming platforms.
On September 1, 2025, Nazara Technologies share price opened at ₹1,163.00 on NSE, above the previous close of ₹1,161.10. During the day, it surged to ₹1,170.00 and dipped to ₹1,158.20. The stock is trading at ₹1,158.20 as of 9:17 AM. The stock registered a marginal decline of 0.25%.
Over the past week, it has moved up by 2.22%, over the past month, it has declined by 13.53%, and over the past 3 months, it has declined by 9.87%.
Nazara Technologies’ decision to cancel its ₹15.90 crore share acquisition in Moonshine Technology reflects a strategic response to regulatory changes in India’s online gaming sector. The termination highlights the significant impact of policy shifts on corporate investment strategies in the gaming industry.Nazara Technologies
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Published on: Sep 1, 2025, 11:02 AM IST
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