Nazara Technologies Gets NCLT Approval to Acquire Smaaash Entertainment

Nazara Technologies Ltd. has received approval from the National Company Law Tribunal (NCLT), Mumbai bench, for its resolution plan to acquire Smaaash Entertainment Pvt. Ltd. The tribunal’s order was passed on May 7, 2025. The resolution plan was submitted under the Insolvency and Bankruptcy Code, 2016, and was accepted with modifications related to the term “effective date.”

Background 

Smaaash Entertainment entered the corporate insolvency resolution process (CIRP) in 2022 after defaulting on payments worth ₹292.4 crore to Edelweiss Asset Reconstruction Company. During the CIRP, Bhrugesh Amin of BDO Restructuring Advisory LLP was appointed as the resolution professional. Claims worth ₹426.3 crore were admitted from multiple creditors, including Edelweiss ARC, Yes Bank, SIDBI, and Mabella Investment Advisors.

Dispute Over Brand Ownership Resolved

The NCLT also addressed a separate dispute related to the ownership of the ‘Smaaash’ brand. The tribunal declared the transfer of the brand name and other assets by founder Shripal Morakhia to Fun Gateway Arena Pvt. Ltd. as fraudulent and void. It concluded that the transfer was an intentional effort to divert major assets from Smaaash Entertainment during insolvency.

Read more: Nazara Technologies Sold Its Entire Stake in OpenPlay For ₹104.33 Crore!

Nature of Smaaash’s Operations

Smaaash Entertainment operates multi-activity entertainment centres, offering services such as bowling, go-karting, arcade games, sports simulations, and virtual reality gaming. These centres are located across several cities in India.

Market Reaction

As of 9:18 AM on May 8, 2025, Nazara Technologies share price was trading at ₹1,069.90, a 0.12% down.  Over the past 12 months, the stock has risen by 68.41%, and 5.69% year-to-date.

Conclusion

The NCLT’s approval clears the way for Nazara Technologies to proceed with the acquisition of Smaaash Entertainment. The resolution plan now moves to the implementation stage, with further updates expected once the formal order is made available.

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