Gaming platform Deltatech Gaming Limited has filed its Draft Red Herring Prospectus (DRHP) with the markets regulator, Securities and Exchange Board of India (SEBI), to raise ₹550 crore through an initial public offering (IPO).

The issue comprises a fresh issue of equity shares worth up to ₹300 crore and an offer-for-sale (OFS) of ₹250 crore by Delta Corp Limited. 

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

Further, not less than 75 per cent of the offer shall be available for allocation to Qualified Institutional Buyers, not more than 15 per cent to non-institutional bidders and 10 per cent for the retail individual bidders.

Preferential issue

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

The proceeds from the fresh issuance worth ₹150 crore will be utilised for organic growth, through marketing and business promotion activities, to attract new gamers while ₹50 crore will be utilised to strengthen the technology infrastructure for developing new capabilities, maintain and manage its existing platform and general corporate purposes, it said.

Real money gaming segment

The Gurugram-based company operates in the real money gaming segment in India. Its platforms include Adda52.com, which offers poker, and Adda.games, a multi-games, including Adda52Rummy, which is its rummy product.

In April 2021, it acquired multi-gaming technology under the trademark Faboom and rebranded it as the Adda.games platform.

Deltatech Gaming’s revenue from operations stood at ₹137.23 crore for fiscal 2022 against ₹155.37 crore for fiscal 2021.

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

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