IPO for Deltatech gaming available in market by year-end

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Deltatech Gaming IPO for 550 crore will be available by the end of the year, confirmed by the Chairman of the company, Jaydev Mody. The issue comprises equity shares worth 300 crore and an offer-for-sale (OFS) of Rs 250 crore.

The Gurugram-based gaming and hospitality company is set to go public by the year-end. In an exclusive conversation with Udayan Mukherjee from Business Today TV, Jaydev Mody said, “We are in touch with merchant bankers and meeting with various investors. Roadshows are starting and going into November. We hope to launch soon after that. We think we can finish the entire IPO process by the end of this year.”

Deltatech gaming is a subsidiary of Deltatech Corp, has been in the gaming and casino business for over a decade, and is the only listed gaming and hospitality company in India. Deltatech Corp. also reported the highest revenue and profit this year for the first half of FY22-23.

The company has already planned to spend 150 crore from the fresh issue towards organic growth through marketing and business promotion activities to help them retain existing customers by providing more facilities and attract new customers as well while another 50 crore will be spent on strengthening the technology infrastructure and to maintain the existing platform.

Mody also commented on how various offshore gambling companies are operating in the country without any license and are not regulated properly, and do not pay taxes while also talking about the future plans of the company, saying, “we are seriously making a lot of effort to grow our online business in the multi-gaming platform and in the real money gaming space, I think we are already paying 28 per cent GST for casinos. But the online gaming space pays 18 per cent, and horse racing pays 28 per cent. It’s the important method, and if the government rationalizes, all these three industries can grow.”

Mody also said, “We only like to do a hotel, where we run the gaming casino business because we need to house our players, and a hotel is an integral part of that. The hotel business doesn’t make money with land prices and the cost of construction rising, especially during the Covid era. It just doesn’t make sense. But, it’s crucial to our gaming business” when asked about return ratios in the hospitality business by Udayan Mukherjee.