Nazara Technologies , a prominent player in the Indian gaming industry, has announced the termination of its Share Purchase Agreement (SPA) with I3 Interactive Inc. The deal, which was aimed at acquiring the remaining stake in Moonshine Technology Private Limited, has been called off following significant changes in India's online gaming landscape.

Deal Details and Termination

The acquisition, originally valued at approximately Rs 15.90 crore, involved purchasing 38,073 fully paid-up equity shares of Moonshine Technology Private Limited. These shares represented 0.96% of the company's equity share capital. The agreement, initially signed in September 2024, has now been cancelled due to what Nazara Technologies describes as a 'material adverse effect'.

Regulatory Changes and Impact

The termination comes in the wake of the implementation of the Promotion and Regulation of Online Gaming Act, 2025, which took effect on August 22, 2025. This new legislation prohibits online real-money gaming in India, including real-money poker, which directly affects the business model of companies like Moonshine Technology.

Formal Termination Process

Nazara Technologies issued a Notice of Termination to I3 Interactive Inc. on August 31, 2025. As per the terms of the SPA, the agreement will officially terminate after 30 days from the receipt of this notice, unless remedied earlier. Following the termination, all rights and obligations under the agreement will cease, except for those expressly provided in the SPA.

Market Response

The news of the deal's termination seems to have been well-received by the market. Nazara Technologies' shares closed 1.65% higher at Rs 1,158.25 on the day of the announcement, suggesting that investors may view this decision positively in light of the changing regulatory environment.

Company's Disclosure

In compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Nazara Technologies has formally disclosed this development to both the BSE Limited and the National Stock Exchange of India Limited. The company's Company Secretary and Compliance Officer, Arun Bhandari, signed off on the official communication.

This termination highlights the significant impact of regulatory changes on the online gaming industry in India, forcing companies to reassess their strategies and acquisitions in this evolving market landscape.

Nazara Technologies Limited, a prominent player in the gaming and sports media sector, has disclosed that its subsidiaries have entered into multiple loan agreements totaling approximately ₹17.73 crores. The company made this announcement through a regulatory filing, detailing three separate loan arrangements between its wholly-owned subsidiaries.

Key Loan Agreements

1. Kiddopia Inc. to Nazara Technologies UK Limited

   • Loan Amount: Up to USD 1 million (₹8.73 crores)
   • Purpose: Working capital, acquisitions, and expansion plans

2. Sportskeeda Inc. to Nazara Technologies UK Limited

   • Loan Amount: Up to USD 572,443 (₹5.00 crores)
   • Purpose: Business and corporate purposes

3. Nazara Technologies (Mauritius) to Nazara Technologies UK Limited

   • Loan Amount: Up to GBP 367,000 (₹4.00 crores)
   • Purpose: Business and corporate needs

Loan Terms and Conditions

All three loans are unsecured and will be disbursed in tranches. The agreements have been classified as related party transactions but are exempted under listing regulations as they occur between wholly-owned subsidiaries of Nazara Technologies Limited.

Outstanding Loan Amounts

The company has also disclosed existing outstanding loan amounts for two of the agreements:

Corporate Structure and Compliance

Nazara Technologies UK Limited, the borrower in all three agreements, is a wholly-owned subsidiary of Nazara Technologies Limited. The lenders—Kiddopia Inc., Sportskeeda Inc., and Nazara Technologies (Mauritius)—are also part of the Nazara group, either directly or indirectly owned by the parent company.

The company has affirmed that these transactions are on an arm's length basis and comply with applicable laws and regulations. The promoter, promoter group, and group companies of Nazara Technologies do not have any interest in these transactions.

These strategic financial moves within the Nazara group suggest a focus on strengthening its UK operations and potentially preparing for future growth initiatives. As the gaming and sports media landscape continues to evolve, Nazara Technologies appears to be positioning its subsidiaries for potential expansion and operational flexibility.