Casino and hospitality operator Delta Corp. has seen its “highest-ever” revenue in the Q3 of this financial year and the casino operator feels the omicron variant will only act as a speed breaker of sorts. The comments came from Hardik Dhebar, chief financial officer at Delta Corp. during a conference call last week.
The Board of Delta in the latest meeting approved the listing of its wholly-owned subsidiary that operates the Adda52 poker portal. Dhebar said they are looking at a pretty much decent and healthy kind of valuation for the online business. “If not identical, but in a similar, real money gaming space in form of Nazara and you have had Dream 11 and MPL, who have raised money from the private equity space in the recent past. And we all know what kind of valuations they have enjoyed, and Nazara, what valuation it is enjoying today on the current listed space.“
Delta Corp said the IPO of its online gaming unit is to build a “dedicated war chest” to grow this business. It will be a combination of an offer sale by Delta that will generate some cash for Delta and a fresh issue. The company recently launched a multi-gaming platform and has, actively started the marketing, sales promotional activity, for the multi-gaming platform, which basically offers Poker and Fantasy League, Rummy, and other real money games, such as Callbreak, Fruit Ninja, the Slice Ninja. The bulk of proceeds from the IPO will be used for future acquisition of players, marketing, brands, sales promotion, and growth, Dhebdar said.
Responding to a query, Dhebar said they have examined various options of fundings and constraints involved and choose an IPO to unlock the shareholder value. On the Delta’s pernem integrated resort Dhebar said there was no clearance that was cancelled. “There is no issue on that front. The formal notification and the formal written approval to us will happen in the next 15 days’ time. So as far as the approval for the project is concerned, it is done, but I — we haven’t yet made any public disclosure to that effect, given the fact that we don’t have anything in writing as of now.” The company expects anywhere between 36 to 48 months to complete the project upon getting final approvals.
Dhebar said Nepal properties are doing a business of INR 3.5 crore to INR 4 crore a month and Sikkim has also been clocking close to about INR 3 crores to INR 3.25 crores a month. The gaming and hospitality company is looking at an INR 2,200 crores of capital expenditure for the next four to five years for the proposed projects. The company currently has INR 500 crores in cash and expects to generate INR 400 crore every year. The company is also looking to sell off the land parcel it acquired in Sri Lanka a few years ago. Dhebar said there has been regime change in the island nation and amendments to the law-making the proposed venture not possible. Delta also expects a new vessel to be ready to put into operations in the calendar year 2023.
Concerning the casino in Daman, Dhebar said a final approval from the government is pending and is also subject to the outcome of a court decision. Delta expects to operate the casino within a couple of months from the time upon getting required approvals.