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.

Nazara Technologies , a prominent player in the Indian gaming industry, has been in the spotlight due to recent stock market volatility, insider trading allegations, and significant financial moves.

Insider Trading Allegations and Stock Plunge

Trinamool Congress MP Mahua Moitra has accused Rekha Jhunjhunwala of insider trading after she sold her entire 7.06% stake in Nazara Technologies before the government introduced the Online Gaming Bill. Jhunjhunwala sold 61.8 lakh shares at Rs 1225.00 per share, earning Rs 334.00 crore.

Following the bill's introduction, which bans real-money gaming and prohibits related monetary transactions and advertising, Nazara shares dropped 26.6% to Rs 1028.00.

Impact on Investors

Nikhil Kamath, co-founder of Zerodha and True Beacon, and veteran investor Madhusudan Kela, who retained their stakes, faced combined losses of approximately Rs 100.00 crore.

Nikhil Kamath's Stake

Madhusudan Kela's Stake

Analyst Outlook

ICICI Securities downgraded Nazara Technologies to 'Reduce' and cut the target price to Rs 1110.00 from Rs 1500.00, stating the bill would make online real-money gaming infeasible in India.

Financial Support for UK Subsidiary

Nazara Technologies has approved a £1.26 million loan for its UK subsidiary. Additionally, the company has approved Rs 1000.00 crore in inter-company loans for Nazara UK. These approvals represent significant financial support being extended to the company's UK operations, potentially indicating a strategic focus on international markets.

Conclusion

The recent stock performance, insider trading allegations, regulatory concerns, and financial support for international operations highlight the complex and evolving nature of Nazara Technologies' business landscape. As the company navigates these challenges and opportunities, investors and industry observers will be keenly watching how Nazara and other players in the sector adapt to the changing market conditions and regulatory environment in India while potentially expanding their global footprint.