Deltatech Gaming IPO Expected to Hit Markets by Year End, Chairman Jaydev Mody Confirms

0

Deltatech Gaming, based in Gurugram, plans to go public by the end of the year, said Jaydev Mody, president of Delta Corp Ltd.

“We are in contact with investment bankers and meet various investors. The roadshows begin and continue in November. We hope to launch soon after. We believe we can complete the whole IPO process by the end of this year,” Mody said in an exclusive chat with Udayan Mukherjee, Global Editor of Business Today TV.

Deltatech Gaming’s Rs 550 crore issue includes a new equity issue worth up to Rs 300 crore and an offer to sell (OFS) of Rs 250 crore by developer Delta Corp Ltd. It is a subsidiary of Delta, headquartered in Mumbai. Corp, which has been in the casino business for over a decade. Delta Corp is the only publicly listed company active in the casino gaming industry (live, electronic and online) in India. The Company is engaged in diversified segments such as casino games, online games, hospitality and real estate.

Proceeds worth Rs 150 crore from the new issue will be used for organic growth through marketing and trade promotion activities, to attract new players and retain existing ones, Rs 50 crore will be used to strengthen technology infrastructure in order to develop new capabilities, maintain and manage its existing platform and general business objectives.

Speaking about the company’s future plans, Mody said, “We are seriously pushing hard to grow our online business in the multi-game platform and in the real-money gaming space.”

Commenting on the regulation of online gambling activities in India, Mody said that there are many illegal gambling sites currently operating in the country, some of them from overseas, unlicensed and unregulated. , and do not pay taxes.

“I think we already pay 28% GST for casinos. But the online gambling space pays 18% and horse racing 28%. It’s the method that’s important and if the government streamlines, these three industries can really grow,” Mody added.

Delta Corp filed a writ petition in the Bombay High Court in December 2018 in hopes of receiving a casino license in the Union Territory from Daman & Diu. The company opened its five-star resort, the Deltin in Daman through its subsidiary Daman Hospitality Pvt Ltd, with plans to launch casino operations. “If we get an order in our favor we can start within 30 days and that will be a huge plus for Delta as we believe Daman can make at least 20% of our current revenue and contribute a lot to our end line,” Mody said.

Asked about return ratios in the hospitality industry, Mody said, “We only like to do one hotel, where we run the gaming casino business. Because we need to house our players and a hotel is an integral part of it. Hospitality is not making money with rising land prices and construction costs, especially in the Covid era. It just doesn’t make sense. But it is crucial for our gaming business.”

Share.

About Author

Comments are closed.