Deltatech Gaming Limited IPO Company Profile:
Deltatech Gaming Limited is a digitally native, technology-led gaming platform, delivering a gamer-centric gaming experience across various offerings. The company is one of the earliest companies in the real money gaming segment in India and Adda52 is India’s first online poker platform offering multiple poker variants. The company has been considered a ‘category pioneer’ in India, having a large gamer base and more than 34.5% of the market share for over seven years till Fiscal 2021.
Deltatech Gaming Limited IPO Business Offerings:
- Adda52:
Adda52 is a flagship platform where the company hosts poker, enabling it to attract, engage and retain its gamers, and creating recall value. This is attributable to, amongst others, (a) easy-to-use mobile apps, desktop apps, and websites, (b) various poker formats, such as Cash games, Tournaments, Sit n’ Go, etc., which cater to varied gamer needs; (c) engagement tools, such as, leaderboards and contests, that make a gamer’s journey on the platform even more engaging; and (d) multiple features such as multi–tabling option, chat room, viewing options, viz., gamer statistics, game history, etc.
- games:
In April 2021, the company acquired multi-gaming technology under the brand ‘Faboom’ and re-branded it as the Adda.games platform, which features multi-player real money games, such as rummy, poker, fantasy cricket and casual and hyper-casual real money games, like call break, to expand its offerings, along with certain engagement tools, such as, leaderboards and contests that make the gamer’s journey on the platform even more engaging. Since the launch of Adda.games, the company has maintained an increasing number of gamers on its platform.
- While Adda52Rummy is currently offered through a separate platform, for the growth of rummy, the company intends to merge Adda52Rummy into Adda.games in the near future.
Deltatech Gaming Limited IPO Details:
| IPO Open Date | Not Available |
| IPO Close Date | Not Available |
| Listing Date | Not Available |
| Face Value | ₹1 per share |
| Price | Not Available |
| Lot Size | Not Available |
| Issue Size | [●] shares
(aggregating up to ₹550.00 Cr) |
| Fresh Issue | [●] shares
(aggregating up to ₹300.00 Cr) |
| Offer for Sale | [●] shares
(aggregating up to ₹250.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not more than 75% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
| Retail Shares Offered | Not less than 10% of the Offer |
| Promoters | Delta Corp Limited |
Deltatech Gaming Limited IPO Financial Analysis:
| Particulars | FY-22(in cr.) | FY-21(in cr.) | FY-20(in cr.) | CAGR (FY-20 to FY-22) |
| Revenue from Operations | 137.23 | 155.37 | 131.65 | 1.4% |
| Other Income | 0.41 | 0.69 | 0.52 | |
| Employee Cost | 33.51 | 23.42 | 14.62 | |
| Other expenses | 100.64 | 104.38 | 74.82 | |
| EBITDA | 3.49 | 28.25 | 42.72 | -56.6% |
| EBITDA margin% | 2.54% | 18.18% | 32.45% | |
| Depreciation | 8.10 | 6.50 | 3.14 | |
| Interest | 0.06 | 0.22 | 0.38 | |
| Exceptional Items | 0.01 | 0.00 | 0.70 | |
| (Loss)/Profit Before Tax | -4.66 | 21.53 | 39.90 | |
| Total tax | -0.26 | 5.58 | 10.06 | |
| (Loss)/Profit After Tax | -4.40 | 15.95 | 29.85 | |
| (Loss)/Profit After Tax margin% | -3.21% | 10.27% | 22.67% |
Pre-Offer shareholding of the Selling Shareholders:
| S. No. | Name of the Selling Shareholder | No. of Equity Shares
held |
Percentage of the pre-Offer paid
Up equity share capital (%) |
| 1. | Delta Corp Limited | 95,690,856 | 100% |
| Total | 95,690,856 | 100% |
Deltatech Gaming Limited IPO Offer for Sale Details:
| S. No. | Name of the Selling Shareholder | Amount of the Offer for Sale |
| 1. | Delta Corp Limited | up to ₹250.00 Crores |
Deltatech Gaming Limited IPO Strengths:
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Deltatech Gaming Limited’s business model, coupled with its pan-India gamer base, has given it a competitive advantage, and higher network liquidity. This has helped the company to capture more than 34.5% of the market share for over seven years till Fiscal 2021.
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Deltatech Gaming Limited’s data analytics capabilities, powered by scalable data engineering, allows the company to consume a large number of data points and leverage such technology by tracking the gamer preferences and the data from the games played by the gamers, such as the preferred game of the gamers, the preferred variant, the range of buy-in and the frequency of playing the games of such gamers, to further enhance the offerings on its platforms. This has helped the company understand the gamers and enables it to cater to their requirements, thereby monetizing its offerings, which in turn has helped in maintaining positive EBITDA. This has also enabled the company to retain gamers on its platform.
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In line with Deltatech Gaming Limited’s goal to remain self-sustainable, the company has not relied on any external investments since its Promoter, Delta Corp Limited, acquired 100% of the shareholding. The increase in the number of the cumulative registered gamer base from 2.72 million in Fiscal 2020 to 5.55 million in Fiscal 2022 has helped increase the network liquidity on the platform which has translated into the consistent generation of positive operating cash flows and EBIDTA
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Deltatech Gaming Limited’s Promoter’s offline presence helps in trust building, physical presence as a brand that has always helped gamers, and Adda52 and Adda.games are now synonymous with Delta Corp Limited. The company further benefits from Delta Corp Limited’s presence and the trust infrastructure created by them in the Indian organized gaming and entertainment industry to continuously hone its strategies for ensuring better engagement with the gamers and thereby improve overall gamer experience and encourage brand loyalty.
Deltatech Gaming Limited IPO Risk Factors:
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Deltatech Gaming Limited derives a significant portion of its revenue from Adda52 and any new entrant in the real money gaming industry could have a significant impact on the business, cash flows, results of operations, and the growth of the Company.
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Deltatech Gaming Limited incurred a net loss in Fiscal 2022, and the company may not be able to achieve profitability in the near future, which may adversely impact the business and the value of the Equity Shares of the company
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Deltatech Gaming Limited may not be able to maintain or grow the size of its gamer base or the level of engagement of its gamers which may affect the network liquidity. This could materially and adversely affect the business, financial condition, cash flows, and results of operations.
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Deltatech Gaming Limited operates in a competitive industry and its market share may be adversely impacted in case the company does not keep itself apprised of the latest consumer trends and technology, and if it fails to compete effectively in the markets in which it operates. Further, any increase in competition for Adda.games could materially and adversely affect the company’s business.
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Deltatech Gaming Limited has historically spent significantly on gamer acquisition. If it fails to retain its gamers, attract new gamers, and if the gamer acquisition costs increase, the business, revenue, profitability, and growth of the company may be adversely impacted.
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Deltatech Gaming Limited relies on third-party vendors for geo-tagging and geo-blocking for gamers originating from restricted states in India, and any failure to consequently comply with the applicable gambling legislations across India could adversely impact the reputation, the business, and growth prospects of the company.
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Advertisements of the company’s platforms are subject to regulatory scrutiny. Any contravention of such regulations may adversely affect the business and prospects.
Objects of the Offer:
Deltatech Gaming Limited proposes to utilize the Net Proceeds towards funding the following objects:
- Organic growth, through marketing and business promotion activities, to attract new gamers and retain existing gamers on the platforms
- Strengthen the technology infrastructure to develop new capabilities, maintain and manage the existing platform
- Funding inorganic growth initiatives and general corporate purposes.
Deltatech Gaming Limited IPO Prospectus:
- Deltatech Gaming Limited IPO DRHP –
- Deltatech Gaming Limited IPO RHP –
Registrar to the offer:
KFin Technologies Limited
Contact Person: M Murali Krishna
Telephone: +91 40 6716 2222
E-mail: dgl.ipo@kfintech.com