Deltatech Gaming’s IPO is expected to be launched by the end of the year, confirmed Chairman Jaydev Mody

Gurugram-based Deltatech Gaming plans to go public by the end of the year, says Jaydev Mody, chairman of Delta Corp Ltd.

“We are in contact with merchant bankers and meet with various investors. Roadshows begin and continue into November. We hope to be able to start soon after that. We believe we can complete the entire IPO process by the end of this year,” Mody said in an exclusive interview with Udayan Mukherjee, Business Today TV’s global business editor.

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

Rs 150 crore of proceeds from the new release will be used for organic growth through marketing and business promotion activities to attract new players and retain the existing ones, Rs 50 crore will be used for strengthening the technology infrastructure to develop and sustain new skills and maintain its existing platform and general corporate purposes.

Commenting on the company’s future plans, Mody said, “We are seriously making great efforts to grow our online business in the multi-gaming platform and real-money gaming space.”

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

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

Delta Corp filed a written application with the Bombay High Court in December 2018, hoping to obtain a Union Territory casino license from Daman & Diu. The Company opened its five star resort, The Deltin in Daman, through its subsidiary Daman Hospitality Pvt Ltd, with plans to begin casino operations. “If we get an order in our favor we can start within 30 days and it will be a huge advantage for Delta because we believe Daman can perform at least 20 percent of our current top line and contribute a lot to our bottom line.” ‘ Mody said.

When asked about the rates of return in hospitality, Mody said, “We just like to do a hotel where we do the casino business. Because we need to accommodate our players and a hotel is an essential part of that. The hospitality industry is not making money from rising property prices and construction costs, especially during the Covid era. It just doesn’t make sense. But it’s critical to our gaming business.”