BackJhunjhunwala portfolio stock falls to hit all-time low on SVB exposure
Nazara Tech share price plunged to hit low of ₹483 apiece on the BSE in Monday's trading session
PremiumShares of Nazara Technologies Ltd, mobile gaming company, plunged to hit low of ₹483 apiece on the BSE in Monday's trading session on worries of having exposure to the Silicon Valley Bank (SVB). Two of its step-down subsidiaries hold cash balances of around ₹64 crore at the SVB.
Nazara Technologies informed in an exchange filing that its subsidiaries - Kiddopia Inc and Mediawrkz - continue to be well capitalised and are generating positive cash flows along with profitability. Hence, Nazara Technologies said, it expects no impact on its day-to-day operations, business performance and growth plans due to the SVB event.
It further asserted that Nazara Group (Nazara Technologies Limited and its subsidiaries) continues to maintain healthy reserves of cash and cash equivalents in excess of ₹600 crore excluding the SVB-impacted funds.
As per the recent shareholding pattern on the BSE, Indian investor Rekha Jhunjhunwala holds 65,88,620 shares that constitutes to 10% stake in the tech company as of December 2022.
Nazara is an India-based, diversified gaming and sports media platform with a presence in India and across emerging and developed global markets such as Africa and North America, and has offerings across interactive gaming, eSports, ad-tech and gamified early learning ecosystems. Nazara Tech shares made stock market debut in April 2021 and have fallen more than 39% since listing.
India's state minister for technology Rajeev Chandrasekhar on Twitter said that he will meet startups this week to assess the impact on them of the SVB collapse, as concerns rise about the fallout for the Indian start-up sector.
SVB's failure has roiled global markets as California banking regulators shut down the bank on Friday after a run on the lender, which had $209 billion in assets at the end of 2022, with depositors pulling out as much as $42 billion on a single day, rendering it insolvent.
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