One 97 Communications Approves Loan Conversion into Shares and Default Loss Guarantee
One 97 Communications Limited announced the approval of two material corporate actions: converting an outstanding loan amount into equity shares of its step-down subsidiary, First Games Technology Private Limited (FGTPL), and providing a Default Loss Guarantee of up to ₹ 90 crore.The Company's board approved the conversion of a loan extended to FGTPL, which had previously discontinued its online real money gaming business.
Conversion of Outstanding Loan into FGTPL Equity Shares
First Games Technology Private Limited (FGTPL), a step-down subsidiary of the Company, discontinued its online real money gaming business effective August 25, 2025. The Company had previously fully impaired its equity and loan investment in FGTPL.The Company approved the conversion of the outstanding loan, including unpaid interest, amounting to approximately ₹ 197 crore, into equity shares of FGTPL. This transaction involves converting the loan amount into 19,67,70,855 equity shares of FPL at par, with each share having a face value of ₹ 10.
According to the details provided:
| Particulars | Details |
|---|---|
| Target Entity | First Games Technology Private Limited (FGTPL) |
| FGTPL Networth (as of March 31, 2025) | INR (267.08) Cr |
| FGTPL Turnover | INR 90.82 Cr |
| Outstanding Loan Amount to Convert | Approximately ₹ 197 crore |
| Equity Shares Issued | 19,67,70,855 shares of ₹ 10 each |
| Resulting Shareholding | Company's direct and indirect shareholding will increase from 55% to 82.6% on a fully diluted basis. |
| Financial Impact | This conversion has no financial impact on the Company. |
FGTPL, incorporated on November 13, 2017, was formerly engaged in the online real money gaming business. The Company noted that it had already fully impaired its outstanding loan and investment in the subsidiary.
Approval of Default Loss Guarantee
In line with its existing business model of facilitating loan distribution, One 97 Communications Limited approved providing a Default Loss Guarantee to a lending partner.The Company approved providing a Default Loss Guarantee of up to ₹ 90 crore on loans disbursed by the lending partner, Piramal Finance Limited. This guarantee, which will be provided in the form of a Bank Guarantee or Fixed Deposits, is intended to support the Company's core loan distribution activities.
The approved guarantee details are as follows:
| Parameter | Detail |
|---|---|
| Beneficiary/Lending Partner | Piramal Finance Limited |
| Guarantee Amount | Up to ₹ 90 crore, net of invocations |
| Purpose | Providing support for loans disbursed by the lending partner, aligning with the Company's loan distribution model. |
| Impact | This represents a Financial Guarantee expense of up to ₹ 90 crore over a period of time. |
PAYTM Stock Price Movement
Today, One 97 Communications Limited shares gained momentum, closing at ₹1148.85, representing a 0.66% jump for the day. The stock traded on a solid volume of 2.23 million shares, indicating strong post-market interest.Source:
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