Nazara Technologies lends ₹28 crore to subsidiary Smaaash
- Nazara Technologies lends up to ₹28.00 crore to Smaaash
- Unsecured loan funds working capital and capital expenditure
- Parent holds conversion option for equity shares
- Total outstanding loan exposure to subsidiary is ₹116.00 crore
*this image is generated using AI for illustrative purposes only.
Nazara Technologies entered into a loan agreement with its wholly owned subsidiary, Smaaash Entertainment Private Limited, on September 21, 2026. The deal allows the parent company to extend an unsecured loan of up to ₹28.00 crore in one or more tranches.
The funds are designated for Smaaash’s general business purposes, including working capital requirements, capital expenditure, and the acquisition of capital assets. The transaction complies with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.
Loan Structure and Terms
The agreement grants Nazara the discretion to convert all or part of the loan into equity shares of the borrower, subject to receiving requisite approvals. This conversion right is exercisable via written notice to Smaaash.
As a transaction between a holding company and its wholly owned subsidiary, the deal is exempt from standard related party transaction provisions under the Listing Regulations. The company confirmed the transaction was executed at arm’s length.
| Particulars | Details |
|---|---|
| Lender | Nazara Technologies Limited |
| Borrower | Smaaash Entertainment Private Limited |
| Loan Amount | Up to ₹28.00 crore |
| Nature | Unsecured |
| Security Provided | Nil |
| Execution Date | September 21, 2026 |
Existing Exposure
The disclosure highlights the cumulative nature of the financial relationship between the two entities. As of the date of disclosure, the total amount of loans outstanding from Nazara to Smaaash stood at ₹116.00 crore.
This new facility adds to the existing balance, reflecting continued internal capital allocation towards the gaming subsidiary’s operational and growth needs. No other security or collateral has been provided for these exposures.
Historical Stock Returns for Nazara Technologies
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.57% | -0.82% | +3.29% | +43.88% | +32.65% | 0.0% |
How might the conversion of this unsecured loan into equity impact Nazara Technologies' consolidated balance sheet and Smaaash's capital structure in the medium term?
Given the cumulative exposure of ₹116.00 crore, what specific growth milestones or revenue targets is Smaaash expected to achieve to justify this continued internal capital allocation?
Could the lack of collateral for these loans pose any credit risk concerns for Nazara if the gaming sector faces a downturn or regulatory headwinds in India?
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