Krafton Share Prices Take a Hit as BGMI Reportedly Gets Banned in India
Stocks dropped rapidly as the situation regarding the BGMI ban unfolds.
The Indian gaming community was not prepared for BGMI (Battlegrounds Mobile India) getting banned by the Indian Government with regards to the interest of national security, as reported by Reuters.
On 28th July, the biggest esports and gaming title in the country suddenly disappeared from the Google Play Store and the Apple App Store, leading to a lot of speculations by community members. This was followed by players and personalities coming forward with their respective opinions on the matter, as the situation continued to develop.
Though BGMI is still accessible to those that have already downloaded the game, the negative impact has resulted in Krafton's stock dropping rapidly. Its share price crashed by 9% before recovering to 5.7% by the time market closed for the day.
Krafton stocks fall rapidly following reports of BGMI's ban by the Indian Government
The South Korean company faced a massive scare on the market as its share prices plunged by about 6.13% shortly after news about BGMI no longer being available for download from the App Store and the Play Store became public.
It went on to drop further, reaching a low of 9% as panic started to settle within the Indian mobile gaming community. A lot of speculations and rumors started to surface as everyone tried to understand why the game was taken down across both Android and iOS markets.
However, with multiple players and personalities stepping forward to share their opinion on the matter, the market recovered slightly to go up by 5.7% by the time it closed for the day.
Earlier today, the share prices were down by 15,000 KRW (South Korean won) which is roughly about INR 913 or $11.5 USD. Since then it has managed to continue its recovery standing at a value of 2,33,500 KRW (INR 14,198 or $179) at 15:30 IST, but is still down by about 4.5% in market value.
For now, BGMI is supposedly banned by the Indian Government, which has used a section of the Indian IT law, that includes section 69A, allowing them to block access to content in the interest of national security.