Delta Corp subsidiary Deltatech Gaming files for Rs 550 crore IPO

Pune: Deltatech Gaming, which operates gaming platforms Adda52 and AddaGames, has filed a draft red herring prospectus (DRHP) with capital markets regulator, the Securities and Exchange Board of India (Sebi), to raise Rs 550 crore through an initial public offering (IPO).

The issue, of one rupee face value per equity share, consists of a fresh issue of shares worth up to Rs 300 crore and an offer-for-sale (OFS) of Rs 250 crore by parent company

, which primarily operates in the casino and gaming industries, and has a presence in the hospitality and real estate space.

The offer also includes a reservation for subscription by eligible employees and Delta shareholders.

The offer is being made through the book building process, wherein not less than 75% of the offer shall be available for allocation to qualified institutional buyers, not more than 15% for non-institutional bidders and not more than 10% for retail individual bidders.

The company may also consider a preferential issue of equity shares or any other method aggregating up to Rs 50 crore. If such a placement is completed, the fresh issue size will be reduced.

About Rs 150 crore from the proceeds will be used for organic growth and business promotion activities to attract and retain gamers while Rs 50 crore will be towards strengthening the technology infrastructure to develop new capabilities, maintain and manage its existing platform.

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and are the book running lead managers and KFin Technologies is the registrar to the offer. The equity shares are proposed to be listed on the BSE and the NSE.

Real-money gaming player

The Gurugram-based company is one of the earliest entrants in the real money gaming segment in India.

According to market reports, Adda52 is India’s first online poker platform and has a market share of over 34.5%. AddaGames offers multi-games, including Adda52Rummy, which had over 5.55 million registered gamers as on March 31 this year.

Deltatech Gaming’s revenue from operations stood at Rs 137.23 crore for fiscal year 2022, against Rs 155.37 crore in FY21.

The company said it earns revenue through a 3-15% commission fee for facilitating gameplay which comes from the gamers’ contribution to the prize pool.

The gaming market in India was valued around Rs 20,200 crore in FY22 and is expected to grow at a Compounded Annual Growth Rate of 32% to reach Rs 60,000–63,000 crore by FY26, as real money gaming attracts the highest-paying players.

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