7Seas Entertainment Limited, a company listed on the Bombay Stock Exchange (BSE), has announced significant corporate actions following a board meeting held on September 5, 2025. The company has approved an increase in its authorized share capital and plans to issue securities through preferential allotment.

Authorized Share Capital Increase

The board has approved raising the company's authorized share capital from Rs. 23.00 crores to Rs. 25.00 crores. This increase will expand the number of equity shares from 2.30 crore to 2.50 crore, with each share having a face value of Rs. 10.00.

Preferential Allotment of Securities

7Seas Entertainment plans to issue up to 21.65 lakh securities through preferential allotment, divided into three categories:

1. Up to 13.75 lakh convertible warrants at Rs. 80.00 each to promoters and non-promoters.
2. Up to 6.00 lakh equity shares at Rs. 80.00 each to non-promoters.
3. Up to 1.90 lakh equity shares at Rs. 80.00 each by converting unsecured loans from promoters.

The total value of this preferential issue amounts to approximately Rs. 17.32 crores. Post-allotment, assuming full subscription and conversion of warrants, the promoter holding is expected to be 29.94%, while public holding will be 70.06% of the share capital.

Board Changes and Resignations

The company announced the resignations of two directors:

1. Mr. B. Mohan Rao, Non-Executive Non-Independent Director
2. Mrs. C. Sita Visalakshi, Non-Executive Independent Director

Both directors cited professional responsibilities and personal reasons for their resignations, effective September 5, 2025.

Other Key Decisions

• Reappointment of M/s Sathuluri & Co. as statutory auditors for a five-year term, subject to shareholder approval.
• Increase in the remuneration of Mr. L. Maruti Sanker, the Managing Director.
• Scheduling of the 34th Annual General Meeting (AGM) for September 30, 2025, to be held through video conferencing.
• Reconstitution of various board committees following the director resignations.

Financial Implications

The preferential issue is expected to bring in fresh capital, potentially strengthening the company's financial position. The conversion of unsecured loans into equity may also help in reducing the company's debt burden.

These corporate actions reflect 7Seas Entertainment's efforts to restructure its capital, possibly to fund growth initiatives or strengthen its balance sheet. Shareholders and potential investors should closely monitor these developments and their potential impact on the company's future performance.

7Seas Entertainment Limited, a gaming software company, has reported strong financial results for the first quarter, demonstrating significant growth in both revenue and profitability.

Financial Highlights

Revenue Growth

7Seas Entertainment saw its revenue from operations climb to ₹491.41 lakhs for the quarter, marking a substantial 35% increase from ₹362.42 lakhs in the same quarter of the previous year. This growth underscores the company's strong performance in the gaming software sector.

Profitability Boost

The company's bottom line showed impressive improvement, with net profit after tax doubling to ₹53.75 lakhs, up from ₹26.90 lakhs in the corresponding quarter last year. This 100% increase in profitability reflects the company's ability to effectively manage costs while growing its revenue.

Operational Efficiency

Despite the growth in revenue, 7Seas Entertainment managed to keep its expenses under control:

Board Approval and Audit Review

The unaudited financial results were approved by the Board of Directors during a meeting held on August 12. The meeting commenced at 11:30 AM and concluded at 1:20 PM. Additionally, Sathuluri & Co., Chartered Accountants, conducted a limited review of the financial statements and found no material misstatements.

Company Overview

7Seas Entertainment Limited is headquartered at 5th Floor, Plot No.92, 93 & 94, Kavuri Hills, Madhapur, Hyderabad, Telangana. The company operates in the gaming software segment and has maintained its focus on this single business area.

The strong first-quarter results indicate a positive trajectory for 7Seas Entertainment, showcasing its ability to capitalize on opportunities in the gaming software market while maintaining operational efficiency.