DeltaTech Gaming Limited, the company that runs poker platform Adda52, has filed share sale documents with market regulator Securities and Exchange Board of India (SEBI). 550 crore through Initial Public Offering.
will sell new shares of the company 300 crore while the parent Delta Corp Ltd will sell the existing shares 250 crores.
Income from its new issuance, value 150 crore, will be used for marketing and business promotion to achieve organic growth, and Rs 50 crore will be earmarked for strengthening the technology infrastructure.
The company said that it is in consultation with bankers on the issue and may take a call on preferential issue of shares or in some other way as a whole. 50 crores. On completion of the placement, the company will reduce the sale of new shares.
The offer is being made through a book-building process, wherein not less than 75% of the shares on sale will be allotted to qualified institutional buyers, 15% of the shares to non-institutional bidders and 10% to individual retail. bidders
Gurugram-based DeltaTech is one of the early movers in India’s real money gaming segment. Quoting the RedSeer report, the company said that Adda52 has a market share of over 34.5% for the last seven years till FY 2021.
The company said it generates revenue from the 3-15% commission fee it charges to facilitate gameplay that is derived from gamers’ contributions to the prize pool.
In 2016, Delta Corp. acquired Gaussian Networks Pvt. Ltd., which then operated the poker site Adda52.com, in a cash and stock deal worth Rs 182 crore ($27 million).
The IPO will depend on the market conditions, obtaining necessary approvals and other factors. The company noted that DeltaTech Gaming will remain part of Delta Corp after the offer is completed.
Delta Corp’s consolidated net profit falls 17% for the fourth quarter 48 crores as compared to 58 crore in the corresponding period of last year. Company’s sales grew marginally 218 crores from 211 crore a year ago.
Axis Capital Limited and JM Financial Limited are managing the share sale. The shares are proposed to be listed on BSE and NSE.