Gaming firm Nazara Tech says subsidiaries hold cash worth Rs 64 crore in Silicon Valley Bank

Paper Boat Apps, a company that runs children’s edtech app Kiddopia, had its majority stake acquired by Nazara in July 2020, while Mediawrkz is a subsidiary of Datawrkz Business Solutions, of which 33.3% stake is owned 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, we expect no impact on their day-to-day operations, business performance and growth plans due to the SVB event,” Nazara said in a filing to the bourses.

The Mumbai-based company added it continues to maintain funds of over Rs 600 crore, excluding the money impacted by SVB.

On Wednesday, the SVB Financial Group announced that it was raising $2.25 billion in a share sale, in addition to having sold securities worth $21 billion from its portfolio. The bank also said it booked an after-tax loss of $1.8 billion on the sale of these investments. This led to solvency fears, sparking the stock crash and scaring customers into pulling out deposits.

On Friday, a California regulator shut Silicon Valley Bank on Friday and appointed the Federal Deposit Insurance Corporation as receiver.

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Silicon Valley Bank in all had $209 billion in total assets and about $175.4 billion in total deposits, as of December 2022. The main office and all branches of Silicon Valley Bank will reopen on March 13 and all insured depositors will have full access to their insured deposits no later than Monday morning, according to a statement from FDIC.