Bombay (Maharashtra):
Shares of Delta Corp. rose sharply on Friday after the company’s subsidiary Deltatech Gaming filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).
DRHP is a document consisting of the company’s financial details, future prospects and other important aspects related to the company, and is filed with the regulator for the purpose of raising funds primarily through public offerings of its shares.
Delta Corp closed 12.42 percent higher at Rs 184.20 on the BSE.
However, since the start of calendar year 2022, stocks have fallen nearly 30 percent on a cumulative basis, data shows.
The company’s subsidiary filed the DRHP for a proposed initial public offering (IPO) consisting of a new share issue for a total amount of up to Rs 300 crore and an offer for sale totaling Rs 250 crore, the company said in its regulatory filing with the exchanges.
Founded in 1990 as a textile and real estate consultancy, it evolved into diversified segments such as casino games, online gaming and hospitality.
The company’s market cap is currently worth Rs 4,871 crore, according to data from the National Stock Exchange.
Upon completion of the offer, Deltatech Gaming will remain a subsidiary of Delta Corp, according to the exchange filing.
It is important to note that the company’s proposal for an IPO comes at a time when the highly anticipated IPO of major insurance company Life Insurance Corporation of India has undergone a significant correction since its listing on May 17, 2022.
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