Nazara Unplugs: Nodwin’s Capital Raise Triggers Strategic De-Subsidiarisation

Image Source: The Economic Times

Nazara Technologies Ltd has made a strategic restructuring step by authorizing the de-subsidiarisation of its gaming business Nodwin Gaming Pvt Ltd. This follows as Nodwin is set to raise new capital from existing shareholders, an action that would weaken Nazara's shareholding to below 50 percent.

Strategic Transformation: Subsidiary to Associate
The board of directors of Nazara Technologies in its July 16 meeting approved the reclassification of Nodwin Gaming as an associate company from a subsidiary. The key points are:

- Nazara will not be included in Nodwin's future capital raise
- Stake to fall below 50% so that it will lose subsidiary status
- Nodwin to gain financial and operational freedom to pursue aggressive growth

Capital Raise: Powering Standalone Growth
Nodwin Gaming will raise funds from existing shareholders to finance its next phase of growth. The funds will be used to:

- Enhance its worldwide youth and esports media exposure
- Generate new intellectual properties and strategic partnerships
- Consolidate its footprint in the Middle East and Asia's developing nations

Governance Update: Waiving Rights for Flexibility

Nazara will be delegating certain controlling and restrictive rights so that Nodwin can operate independently. They are:

- Waiving board-level controls and veto powers

- Facilitating timely funding and strategic decision-making - Remains majority shareholder of Nodwin, but not majority controlled Next Steps: Shareholder Approval Requirements The de-subsidiarisation is pending the approval of the shareholders at an Extraordinary General Meeting on 13 August 2025. Final contracts will be sealed to comply with SEBI regulations.

Sources: Storyboard18, Economic Times, YourStory, Business Standard, Esports Insider