One 97 Communications has announced a strategic move to convert ₹197 crore in outstanding debt from its subsidiary, First Games Technology Private Limited (FGTPL), into equity shares. This increases the company’s stake in FGTPL to 82.6%. Simultaneously, the company has pledged a ₹90 crore Default Loss Guarantee to Piramal Finance Limited to support its ongoing loan distribution operations, aligning with its commitment to maintaining a robust, scalable financial ecosystem.
Debt Conversion in First Games Technology
One 97 Communications has approved the conversion of approximately ₹197 crore of outstanding debt—inclusive of unpaid interest—into 19,67,70,855 equity shares of its step-down subsidiary, First Games Technology Private Limited (FGTPL). Following this transaction, the company’s aggregate direct and indirect shareholding in FGTPL will rise from 55% to 82.6% on a fully diluted basis. This conversion was initiated as a strategic step following the subsidiary’s discontinuation of its online real money gaming business on August 25, 2025, and is designed to have no further financial impact on the company.
Expansion of Loan Distribution Model
As part of its core business strategy to facilitate credit access, the company has entered into an agreement to provide a Default Loss Guarantee of up to ₹90 crore to its lending partner, Piramal Finance Limited. This guarantee, which will be maintained through bank guarantees or fixed deposits, covers loans disbursed by the partner. The initiative is a calculated effort to support sustainable lending operations and ensures the company remains aligned with its established model of generating revenue through sourcing and collection fees.
Focus on Financial Stability
Both developments underscore the company’s focus on capital restructuring and operational efficiency. By consolidating its stake in FGTPL, the organization completes the process of addressing its previous investments in the gaming sector. Simultaneously, the partnership with Piramal Finance reinforces its commitment to the lending distribution market, providing necessary support for the firm’s portfolio growth in the upcoming fiscal periods.
Source: BSE
