Delta Corp acquires Gauss Network Pvt Ltd.

The online gaming space in India, while well established worldwide, is in its early stages and has immense growth potential.

September 02, 2016 10:09 IST | India Infoline News Service
Delta Corp
Delta Corp Ltd is acquiring Gauss Network Pvt Ltd, which owns Adda52.com, India’s No1 poker site, in a part cash, part equity deal.
In its disclosure yesterday to the stock exchanges, Delta Corp said that with this transaction, which complements the gaming business, “Delta will widen its business horizon and increase its overall footprint, thereby consolidating its overall leadership position.”

With Gauss Network within its fold, Delta Corp will instantly gain leadership position in the online poker space. The acquisition will provide great business and growth synergies as well financial strength and flexibility. It will help expand the customer base and market penetration.
The online gaming space in India, while well established worldwide, is in its early stages and has immense growth potential.
Hardik Dhebar, Group CFO of Delta Corp, said: “The online space will not cannibalise our existing business. The market is big enough to accommodate both the segments. Globally, the two coexist.” He added: “The consolidated revenue of Gauss Network in FY16 was Rs 47 crore and EBITDA margins were in the 30%-35% range.”The company is debt-free and is cash generating.
Delta Corp registered its best-ever quarter with revenue of Rs 108.65 crore in Q1 2016-17 – a growth of 34.6% over the same quarter in the last financial year.

Delta Corp is the largest and only listed company in the gaming and hospitality segment in India.

Stock View:
Delta Corp Ltd is currently trading at Rs. 153, up by Rs. 2.45 or 1.63% from its previous closing of Rs. 150.55 on the BSE.
The scrip opened at Rs. 152.25 and has touched a high and low of Rs. 154.8 and Rs. 152.25 respectively. So far 957221(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 3476.86 crore.
The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 164.85 on 30-Aug-2016 and a 52 week low of Rs. 49 on 29-Feb-2016. Last one week high and low of the scrip stood at Rs. 164.85 and Rs. 143.95 respectively.
The promoters holding in the company stood at 40.86 % while Institutions and Non-Institutions held 13.32 % and 45.82 % respectively.
The stock is currently trading above its 50 DMA.

FREE Benefits Worth 5,000



Open Demat Account
  • 0

    Per Order for ETF & Mutual Funds Brokerage

  • 20

    Per Order for Delivery, Intraday, F&O, Currency & Commodity