The market regulator, Securities Exchange Board of India (SEBI), recently approved Adda52 parent company Deltatech Gaming’s proposal to raise funds through an initial public offering (IPO).
The Gurugram-based company that had filed its draft red herring prospectus on June 16, 2022 to raise INR 550 crores through its IPO received an observation letter on September 30. Getting an observation letter implies SEBI’s nod to launch the IPO and raise the proposed INR 550 crores.
Deltatech Gaming’s INR 550-crore IPO will consist of a fresh issue of equity shares worth INR 300 crores and an offer-for-sale (OFS) of INR 250 crore by promoter Delta Corp Ltd. Proceeds worth INR 150 Crore from the issuance will be used for marketing and business promotion activities to attract new players and retain the existing ones. About INR 50 crore will be used to strengthen the technology infrastructure in order to provide gamers enhanced experience and improve the business security.
Based in Gurugram, Deltatech Gaming Ltd is one of the oldest companies in the real gaming arena in India. Formerly known as Gaussian Networks Pvt Ltd, the company was founded by Mohit Agarwal and Anuj Gupta in 2011 and operates India’s largest online poker website – Adda52.com. Apart from owning Adda52.com, Deltatech Gaming also owns Addagames.com and Adda52rummy.com.
Since its launch in 2011, the Delta Corp’s subsidiary has been developing its own gaming platforms, which continue to evolve. The future looks bright as the real money gaming attracts the highest-paying players. The gaming market in India was valued at INR 20,200 crore in FY22 and is expected to grow at a Compounded Annual Growth Rate of 32% to touch INR 60,000–63,000 crore by FY26.