Nazara Tech gets unrestricted access to ₹64 crore held at Silicon Valley Bank
India's game developer, Nazara Tech, received unrestricted access of ₹64 crore that was held at the troubled Silicon Valley Bank
Two subsidiaries of Indian game developing firm, Nazara Tech, have received unrestricted access of ₹64 crore that was held at the troubled Silicon Valley Bank, the tech firm informed in its stock filing on Wednesday.
Kiddopia and Mediawrkz, the two step-down subsidiaries of the company cumulatively accounted for $7.75 million ( ₹64 crore) at the SVB. However, the company said, ₹60 crore of the total amount held in the bank has been transferred to bank accounts outside of SVB. Whereas, the remaining ₹4 crore was still deposited in SVB accounts for unrestricted operational use.
Also read: KPMG gave SVB, Signature Bank clean bill of health weeks before collapse
“We would like to inform that both the companies i.e. Kiddopia Inc and Mediawrkz Inc have been given unrestricted access to the entire amount of USD 7.75mn (~INR 64 crores) that was held at SVB. From this amount, a sum of USD 7.25mn (~INR 60 crores) has been transferred to bank accounts outside of SVB and the balance amount of USD 0.5mn (~INR 4 crores) remains in SVB accounts for unrestricted operational use," the company said in its stock filing report.
Also Read: SVB meltdown: Bill Ackman gives gov't 48 hours to fix 'irreversible mistake'
Kiddopia is a 100% subsidiary of Paper Boat Apps, and Mediawrkz is a 100% subsidiary of Datawrkz Business Solutions. Nazara holds 51% in Paper Boat and 33% in Datawrkz Business.
Notably, the spectacular collapse of the Silicon Valley Bank ignited a downward rally in Nazara Tech shares in the Indian stock markets. The company shares of the Indian tech firm reached to their 52-week low of ₹483.05 on 13 March, 2023. The company shares are trading 1.26% higher at ₹505.10 on BSE's intra-day trade on Wednesday.
Significant shares of the Indian gaming and sports media platform are also owned by the late market mogul, Rakesh Jhunjhunwala's wife Rekha. She is among the largest public shareholders in the firm. The cash crunch and following collapse of the California-based SVB led to a a market fear among the investors about Nazara as well.
However, the tech company assured the investors of no impact on its investment and cash amount deposited at SVB. "We expect no impact on our subsidiaries' day-to-day operations, business performance and growth plans due to the SVB event,"the company said. The tech firm also informed about its healthy reserves of cash and cash equivalents in excess of ₹600 crores excluding the SVB impacted funds.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!