Deltatech Gaming IPO: Subsidiary of Rakesh Jhunjhunwala-backed Delta Corp files DRHP for Rs 550-cr offer; check Big Bull's latest holding in casino stock

Rakesh Jhunjhunwala Portfolio:Deltatech Gaming Limited, a wholly owned subsidiary of Delta Corp, has filed a draft red herring prospectus with the Securities Exchange Board of India (SEBI) for Rs 550-crore IPO.  

The initial public offering comprises fresh issues of shares worth Rs 300 crore and an offer for sale of up to Rs 250 crore. 

The IPO will be subject to market conditions, receipt of applicable approvals and other considerations, said Delta Corp in an exchange filing, stressing that upon completion of the Offer, DGL will continue to be a subsidiary of Delta Corp Limited. 

"We wish to inform you that Deltatech Gaming Limited (formerly known as Gaussian Networks Private Limited) ("DGL"), has filed a draft red herring prospectus dated June 16, 2022 ("DRHP") with the Securities and Exchange Board of India, for a proposed initial public offering, comprising a fresh issue of its equity shares of face value of Re. 1 each ("Equity Shares"), for an amount aggregating up to ~ 3,000 million and an offer for sale of the Equity Shares held by the Company, for an amount aggregating up to ~ 2,500 million ("OFS") (the "Offer")," Delta Corp said in a regulatory filing.  

It further said that the IPO includes the proposed reservations by the eligible employees of DGL and the Company and  by the eligible public equity shareholder(s) of the Company (excluding such other persons not eligible under applicable laws, rules, regulations and guidelines). 

"In connection with the aforementioned Offer, the board of directors of the Company, at its meeting held today, i.e., June 16, 2022, accorded its approval for participating in the OFS in the Offer," it said. 

Rakesh Jhunjhunwala holding in Delta Corp 

Rakesh Jhunjhunwala, fondly called a Big Bull of the Indian stock market, holds 3.36% of the total paid up equity shares in the casino and gaming company, as per the latest corporate filings.  

The ace investor held 7.5% stake in the company for the quarter ended March 2022, but he offloaded 2.8% stake in the company in June.  

The billionaire investor had sold 75 lakh shares of the company in June, bringing down Rakesh Jhunjhunwala and Associates holding in the company to 3.36% from 7.5%.   

Jhunjhunwala and his wife Rekha Jhunjhunwala sold 60 lakh shares of Delta Corp (2.24) between June 1 and June 10. They sold 15 lakh shares (0.56%) in the company between June 13 and June 14. 

Meanwhile, shares of Delta Corp surged over five per cent to Rs 172.60 per share in Friday's intrada trade on the BSE after the subsidiary of the gaming and casino company filed IPO paper with the SEBI