Nazara Invests ₹116 Crore via Loan Agreement to Acquire Full Control of Smaaash
By HDFC SKY | Updated at: Jun 9, 2025 12:35 AM IST
Mumbai, June 8, 2025 — Nazara Technologies Ltd (NSE: NAZARA) has executed a definitive loan agreement worth ₹116 crore with Smaaash Entertainment Pvt Ltd, marking the culmination of a successful insolvency resolution process. As a result, Smaaash has become a wholly owned subsidiary of Nazara Technologies.
Loan Agreement Details
The inter-corporate loan, which is unsecured, was executed on June 6, 2025, and is aimed at settling the outstanding dues of Smaaash’s creditors. This transaction is a key element of the Resolution Plan approved by the Hon’ble NCLT, Mumbai Bench, under the Insolvency and Bankruptcy Code, 2016.
| Particulars | Details |
|---|---|
| Agreement Type | Loan Agreement |
| Date of Execution | June 6, 2025 |
| Loan Amount | Up to ₹116.00 crore (in tranches) |
| Security | Unsecured |
| Lender | Nazara Technologies Ltd |
| Borrower | Smaaash Entertainment Pvt Ltd |
| Outstanding as of Date | Nil |
| Conversion Clause | Loan may be converted to equity under agreement terms |
Regulatory Compliance & Relationship Context
- Disclosure made under Regulation 30 of SEBI (LODR) Regulations, 2015 and SEBI Master Circular dated November 11, 2024.
- Though Smaaash is now a wholly owned subsidiary, Nazara has clarified that this is not classified as a related party transaction, as per applicable exemptions.
- The agreement is not in the ordinary course of business but stems from the approved insolvency resolution process.
Strategic Implications
Nazara’s acquisition of 100% equity in Smaaash positions it to expand further into the real-money gaming and immersive entertainment space. The loan comes with a convertible clause, giving Nazara flexibility to enhance capital control if needed. The move also demonstrates Nazara’s increasing appetite for inorganic growth and distressed asset resolutions.
“With the resolution plan successfully executed, Smaaash is now a fully integrated subsidiary of Nazara. This strengthens our entertainment portfolio while enabling creditor settlement through strategic funding,” the company said in its official remarks.
About the Company
Nazara Technologies Ltd, listed on NSE and BSE, is a diversified gaming and sports media platform with interests across India, North America, and emerging markets. It operates in mobile gaming, eSports, gamified learning, and fantasy sports. The company has a history of investing in innovative and high-growth digital entertainment ventures.
This transaction highlights Nazara’s continued focus on sector consolidation and long-term strategic expansion.
REF: https://nsearchives.nseindia.com/corporate/xbrl/ANN_AGREEMENT_1464384_08062025104058_WEB.xml
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