One 97 Communications Limited has approved the conversion of a loan and unpaid interest amounting to approximately ₹197 crore into equity shares of its step-down subsidiary, First Games Technology Private Limited (FGTPL). This decision follows the discontinuation of FGTPL’s online real money gaming business due to regulatory changes. As a result of this conversion, One 97 Communications‘ shareholding in FGTPL will increase from 55% to 82.6% on a fully diluted basis. The conversion involves the issuance of 19,67,70,855 equity shares of ₹10 each, at par, to the company.
FGTPL, which was primarily engaged in online real money gaming, ceased its operations on August 25, 2025, following the implementation of ‘The Promotion and Regulation of Online Gaming Act, 2025’. The company had previously impaired its equity and loan investment in FGTPL.
In addition to the conversion, One 97 Communications has also approved a Default Loss Guarantee of up to ₹90 crore on loans disbursed by its lending partner, Piramal Finance Limited. This move aligns with the company’s business model of facilitating loan distribution, where it earns revenue through sourcing and collection fees.
The conversion of the outstanding loan into equity shares is expected to be completed by April 30, 2026. No fresh capital infusion is involved in this transaction, and it does not require any regulatory approvals.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).