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Delta Corp Sells Deltatech Gaming to Head Digital Works for ₹491 Crore

Synopsis:

Delta Corp has signed an agreement to sell its subsidiary, Deltatech Gaming, to Head Digital Works for ₹491 crore. The deal includes a 51% stake transfer and a 5.7% shareholding acquisition in Head Digital Works, strengthening its gaming portfolio and financial position.


Delta Corp has finalised a strategic deal to sell its online gaming subsidiary, Deltatech Gaming (Adda52), to Head Digital Works (A23) for ₹491 crore. As part of the transaction, Head Digital Works will acquire a 51% stake in Deltatech Gaming, followed by a complete merger of both gaming entities. In exchange, Delta Corp will secure a 5.7% shareholding in Head Digital Works, allowing it to maintain a stake in the growing digital gaming sector. This move strengthens Head Digital Works’ market position and allows Delta Corp to reallocate capital efficiently.

Also read: Burman Group Acquires Control of Religare Enterprises, Becomes Promoter

DELTA CORP LIMITED

Trade

98.61-1.26 (-1.26 %)

Updated - [-]
103.50day high
DAY HIGH
97.10day low
DAY LOW
2667561
VOLUME (BSE)

Key Takeaways:

  • Deal value: Delta Corp sells Deltatech Gaming for ₹491 crore.

  • Stake acquisition: Head Digital Works acquires a 51% stake in Deltatech Gaming.

  • Market expansion: The deal enhances Head Digital Works’ presence in online gaming.

  • Delta Corp’s stake: Delta Corp receives a 5.7% shareholding in Head Digital Works.

  • Stock performance: Delta Corp share price rose by 4.2% after the announcement.

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Financial Impact on Delta Corp

This sale provides Delta Corp with a significant capital infusion, which could be utilised for strengthening its core business operations. While the company reported a 3.5% YoY increase in net profit to ₹35.7 crore in Q3 FY25, its revenue from operations declined 7.5% to ₹194.3 crore. The company’s EBITDA also fell 42.4% to ₹32.2 crore, highlighting challenges in revenue growth. The deal is expected to offer a fresh liquidity boost, stabilising operations amid fluctuating market conditions.

Delta Corp’s Financial Performance in Q3 FY25

Metrics

Q3 FY25 (₹ Crore)

Change (YoY)

Net Profit

35.7

+3.5%

Revenue from Ops

194.3

-7.5%

EBITDA

32.2

-42.4%

Market Response and Share Price Movement

The announcement had an immediate impact on Delta Corp share price, which surged 4.2%, closing at Rs 100.08 on the NSE. Despite this short-term gain, the stock has corrected over 30% in the past year, reflecting broader market volatility and regulatory concerns in the gaming sector. This transaction could positively influence investor sentiment by strengthening Delta Corp’s financial position and allowing it to focus on its core business segments.

Delta Corp’s sale of Deltatech Gaming to Head Digital Works for ₹491 crore is a strategic decision that enhances liquidity and allows the company to maintain a presence in the online gaming sector through a minority stake. With Delta Corp share price reacting positively, the company’s future financial stability looks promising as it shifts focus to key revenue-generating areas.

Also read: ACE Ltd Secures ₹420 Crore Defence Contract for 1,121 RTFLTs

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This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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