Key Highlights
- Nazara Technologies has entered into a loan agreement with Smaaash Entertainment Private Limited.
- The company will extend an unsecured loan of up to ₹28 crore to Smaaash Entertainment.
- The loan may be provided in one or more tranches.
- Smaaash Entertainment is a wholly owned subsidiary of Nazara Technologies.
- The loan will be used for working capital, capital expenditure and acquisition of capital assets.
- The loan agreement was executed on September 21, 2026.
- No security has been provided for the loan.
- The total loan outstanding as of the disclosure date stood at ₹116 crore.
- Nazara Technologies stated that the transaction is on an arm’s length basis.
- No shares will be issued as part of the transaction.
Nazara Technologies Limited has entered into a loan agreement with its wholly owned subsidiary, Smaaash Entertainment Private Limited, to provide an unsecured loan of up to ₹28 crore in one or more tranches.
According to the company’s disclosure to the stock exchanges, the loan agreement was executed on September 21, 2026. The facility will be extended for general business purposes of Smaaash Entertainment, including working capital requirements, capital expenditure and the acquisition of capital assets, subject to applicable laws.
Nazara Technologies Loan Details
The aggregate amount of the unsecured loan will not exceed ₹28 crore. The loan may be provided in one or more tranches depending on the requirements of Smaaash Entertainment.
Nazara Technologies is the lender under the agreement, while Smaaash Entertainment Private Limited is the borrower. The disclosure states that Smaaash Entertainment is a wholly owned subsidiary of Nazara Technologies.
The company has stated that no security has been provided for the loan. The loan agreement was executed on September 21, 2026.
Existing Loan Outstanding
As of the date of the disclosure, the total amount of loans outstanding was ₹116 crore. The newly disclosed facility of up to ₹28 crore is separate from the existing outstanding amount and is subject to compliance with applicable laws.
The company has disclosed the transaction under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Purpose of the Loan
The loan is intended to support Smaaash Entertainment’s general business requirements. The stated purposes include:
- Working capital requirements.
- Capital expenditure.
- Acquisition of capital assets.
- Other general business purposes, subject to applicable laws.
Related Party and Arm’s Length Details
The disclosure states that Smaaash Entertainment is a wholly owned subsidiary of Nazara Technologies. Since the transaction is between a holding company and its wholly owned subsidiary, the company has stated that it is exempt from the provisions applicable to related-party transactions under the Listing Regulations.
Nazara Technologies also stated that the promoter, promoter group and group companies do not have any interest in the transaction. The company has classified the transaction as being on an arm’s length basis.
No Equity Issuance Involved
The disclosure also states that the transaction does not involve any issuance of shares. Therefore, there are no details relating to the class or number of shares to be issued to the parties under the loan agreement.