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

Adda52 claims to be India’s first online poker platform offering multiple poker variants and had more than 34.5% of the market share for over seven years till Fiscal 2021 according to a DRHP statement.

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The company recently diversified into multi-gaming offerings. With an estimated 400 Mn online gamers in 2020, India is the world’s 2nd largest gaming market by userbase; and is expected to have 690-710 Mn gamers in the next 4-5 years, the company said in the DRHP.

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 the promoter Delta Corp, which primarily operates in the casino and hospitality sectors. On Friday, the shares of Delta Corp closed at Rs 184 from the previous close of Rs 163.90

Delta Corp became the promoter of Gaussian Network pursuant to a scheme of amalgamation effective from 1 April 2016 and currently owns 99.99% of the equity share capital of Deltatech.

The offer also includes a reservation for subscriptions 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.

AZB & Partners are the legal counsels for the promoter Delta Corp with Khaitan & Co acting for lead managers. Walker Chandiok & Co LLP are the statutory auditors. JM Financial and Axis Capital are the book-running lead managers and KFin Technologies is the registrar of the offer.