Silicon Valley Bank Impact: India's Nazara Technologies Shares Sink 7%

Gaming and sports media platform Nazara Technologies witnessed a drop in its shares after the company announced that two of its subsidiaries hold cash balances totalling around Rs 64 crore in the now-collapsed Silicon Valley Bank (SVB).

Gaming and sports media platform Nazara Technologies witnessed a drop in its shares after the company announced that two of its subsidiaries hold cash balances totalling around Rs 64 crore in the now-collapsed Silicon Valley Bank (SVB).

Nazara Technologies on Sunday stated that its two step-down subsidiaries namely Kiddopia Inc and Mediawrkz Inc have cash balances worth $7.75 million in SVB, which was shut down by California banking regulators last week. While Mediawrkz is a wholly owned subsidiary of Datawrkz Business Solutions which is owned partly by Nazara, Kiddopia Inc is a 100% subsidiary of Paper Boat Apps in which Nazara has 51.5% ownership, reported Business Standard.

After Nazara Technologies announced the cash balances, its shares fell 7% today, according to Moneycontrol.  

Following the collapse of the SVB, Nazara Technologies said in an exchange that both of its subsidiaries were well capitalised and generating positive cash flows with profitability. It assured investors that the company doesn't expect any impact of the SVB failure on its day-to-day operations, growth plans, and business performance.