Shares of Delta Corp Ltd soared more than 8% in trading on Friday after online poker and rummy games company Deltatech Gaming filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO) of Rs 550 crore.
“We would like to inform you that Deltatech Gaming Limited (formerly known as Gaussian Networks Private Limited) (“DGL”), a wholly owned subsidiary of Delta Corp Limited (the “Company”), has filed a draft prospectus for red herring dated June 16, 2022 (“DRHP”) with the Securities and Exchange Board of India, for a proposed initial public offering,” the company said in its filing on Thursday.
The initial share sale will comprise a new issue of its capital shares with a par value of Re. company, for an amount totaling up to around Rs 250 crore.
Deltatech Gaming offers real-money gaming through Adda52 and Adda.games platforms and had over 55 lakh registered players at the end of FY22, according to a Money control report.
In a separate development, NSE placed shares of Delta Corp under a trading ban on Friday, as part of the futures and options (F&O) segment. This implies that no new positions are allowed for F&O contracts in the stock when prohibited. The securities were banned in the F&O segment because they exceeded 95% of the market-wide position limit (MWPL), according to the NSE.
Shares of Delta Corp are so far down more than 30% in 2022. As of 12:19 p.m., Delta Corp’s share price was quoted at 176.70 rupees, up 7.84% on the BSE.