Nazara Technologies Ltd updates on balances of subsidiaries in Silicon Valley Bank

Nazara Technologies Limited's ("Nazara") step down subsidiaries Kiddopia Inc and Mediawrkz Inc hold cash balances at Silicon Valley Bank ("SVB"), which is currently under the receivership of the Federal Deposit Insurance Corporation (FDIC). The balances held at SVB by Kiddopia Inc. and Mediawrkz Inc cumulatively account for USD 7.75 mn (~INR 64 crores).

Kiddopia Inc is a 100% subsidiary of Paper Boat Apps Private Limited (owned 51.5% by Nazara) & Mediawrkz Inc is a 100% subsidiary of Datawrkz Business Solutions Private Limited (owned 33% by Nazara)

FDIC has stated that it would issue an advance dividend to depositors within the next week with future payments coming as asset sales occurred. Regardless of the ultimate outcome and its timing, both subsidiaries continue to be well capitalised and are generating positive cash flows along with profitability. Therefore, we expect no impact on their day-to-day operations, business performance and growth plans due to the SVB event.

Further, Nazara Group (Nazara Technologies Limited and its subsidiaries) continues to maintain healthy reserves of cash and cash equivalents in excess of INR 600 cr excluding the SVB impacted funds The situation with SVB remains fluid and the company shall keep all the stakeholders and public at large updated on further developments.

Shares of Nazara Technologies Limited was last trading in BSE at Rs. 517.75 as compared to the previous close of Rs. 525.45. The total number of shares traded during the day was 9145 in over 784 trades.

The stock hit an intraday high of Rs. 523.50 and intraday low of 512.50. The net turnover during the day was Rs. 4739153.00.

Source : Equity Bulls

Keywords

NazaraTechnologies INE418L01021 Kiddopia Mediawrkz CashBalance SiliconValleyBank FDIC