Two of Nazara’s subsidiaries, Openplay Technologies and Halaplay Technologies, have been issued notices by the Indian government for potential Goods and Services Tax (GST) liabilities totaling nearly Rs 1,120 crore.
The notices are likely show cause notices, which means the government is proposing this GST liability but is giving the subsidiaries an opportunity to respond and contest the charges.
Breakdown of Liabilities: Openplay Technologies faces a larger proposed liability of Rs 845.72 crore, while Halaplay Technologies could be liable for Rs 274.21 crore.
This news raises concerns about Nazara Technologies’ financial health. A large GST liability could significantly impact the company’s profitability. Investors are likely reacting to this uncertainty by selling their shares, driving the stock price down.
It’s important to stay updated on the situation. Keep an eye on whether Nazara Technologies contests the notices and what the final outcome of the GST liability case might be. This will give you a better sense of the potential financial impact on the company.