Nazara Shares Gain After Subsidiaries Get Full Access To Deposits In SVB

The step-down units have transferred Rs 60 crore to other banks, while the balance Rs 4 crore is still deposited at SVB.
<div class="paragraphs"><p>U.S. dollar banknotes. (Photo:&nbsp;Xie zhengyi/Unsplash)</p></div>
U.S. dollar banknotes. (Photo: Xie zhengyi/Unsplash)

Shares of Nazara Technologies Ltd. gained on Wednesday after its step-down subsidiaries were granted access to the entire amount held in Silicon Valley Bank.

Kiddopia Inc. and Mediawrkz Inc. were given unrestricted access to the entire amount of $7.75 million, around Rs 64 crore, held at Silicon Valley Bank, the company said in its exchange filing.

The units have transferred the sum of Rs 60 crore to other banks, while the balance amount of $0.5 million, or Rs 4 crore, is still deposited at Silicon Valley Bank.

Kiddopia is a 100% subsidiary of Paper Boat Apps Pvt., in which Nazara has 51.5% stake, while Mediawrkz is a 100% subsidiary of Datawrkz Business Solutions Pvt., in which the company owns 33% stake.

The gaming and sports media company informed the stock exchanges on March 12 that two of its subsidiaries have cash balances worth Rs 64 crore in the struggling Silicon Valley Bank, which was put under receivership by U.S. regulators.

SVB Crisis: India IT Industry Seen At Limited Risk Of Contagion

Shares of Nazara Technologies closed 0.44% higher at Rs 501 apiece, compared with a 0.42% decline in the benchmark Nifty 50. The total traded quantity stood at 2.4 times the 30-day average.

Of the 11 analysts tracking the company, eight maintain 'buy,' two recommend 'hold,' and one suggests 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 53.2%.


Anjali Rai covers markets and business news at BQ Prime...more
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