One 97 Communications Limited has announced a strategic shift for its subsidiary, First Games Technology Private Limited (FGTPL), converting ₹197 crore of debt into equity. This move increases the company’s stake in FGTPL from 55% to 82.6%. Additionally, the company has approved a ₹90 crore Default Loss Guarantee to support its loan distribution model with its lending partner, Piramal Finance Limited, reinforcing its commitment to its core fintech business.
Consolidating Stake in FGTPL
Following the discontinuation of its real money gaming operations on August 25, 2025, due to evolving regulatory norms, One 97 Communications has moved to streamline the capital structure of First Games Technology Private Limited (FGTPL). The company has approved the conversion of an outstanding loan, along with accrued interest totaling ₹197 crore, into 19,67,70,855 equity shares.
This transaction, expected to be completed by April 30, 2026, will raise the company’s aggregate shareholding in FGTPL to 82.6% on a fully diluted basis. The company noted that it had previously fully impaired this investment, meaning this restructuring carries no further financial impact on its balance sheet.
Strengthening Loan Distribution
In a separate strategic development, the company has committed 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, is designed to support the ongoing loan distribution business model.
By providing this credit support, the company aims to facilitate smoother loan disbursements to customers, while continuing to earn revenue through sourcing and collection fees. This initiative is fully aligned with the firm’s broader strategy of scaling its credit distribution footprint while managing risk effectively.
Source: BSE
