Nazara's two step-down subsidiaries hold cash balance of USD 7.75 mn at Silicon Valley Bank

Nazara Technologies announced that two of the company's 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 (~Rs 64 crore).

Kiddopia Inc is a 100% subsidiary of Paper Boat Apps (owned 51.5% by Nazara) & Mediawrkz Inc is a 100% subsidiary of Datawrkz Business Solutions (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, the company expects no impact on their day-to-day operations, business performance and growth plans due to the SVB event.

 

Further, Nazara Group (Nazara Technologies and its subsidiaries) continues to maintain healthy reserves of cash and cash equivalents in excess of Rs 600 crore excluding the SVB impacted funds

Powered by Capital Market - Live News