Rakesh Jhunjhunwala and Rekha Jhunjhunwala backed Delta Corp continues their dominance in the Indian gaming industry as their share price hit a 14-month high of Rs 201.95 on the BSE in an otherwise weak market.
The scrip was up 4.5 per cent at Rs 195 as compared to a 0.32 per cent decline in the S&P BSE Sensex on last Wednesday. As a matter of fact, the stock had surged 36 per cent so far in March with the benchmark Sensex adding 2.2 per cent.
While Nazara Technologies, by offering its first IPO, became the talk of the town last week, Delta Corp still remains the largest and the only listed company engaged in India's casino gaming industry. They are the sole organised player in the industry, operating in all the formats of gaming i.e. Live Casino, Electronic Casino and Online gaming.
According to the latest report, there has been over 20 percent growth in casual gaming in India and Delta Corp holds the aces in the industry. The Jhunjhunwala couple collectively held 7.5 per cent stake in Delta Corp as on December 31, 2020 with Rakesh Jhunjhunwala backing Nazara in its first IPO listing.
"Favorable macro-economic and demographic drivers, growth in adoption of gaming and online learning and improvement in digital payment and tech infrastructure in India provides a great opportunity for growth of the company. Further, with rapidly rising per capita spends and high internet and smartphone penetration, India as a market for each of the company's offerings is still far from saturation, both in terms of the number and engagement of users as well as monetisation opportunities, thereby providing huge potential for growth," ICICI Securities said in an IPO note.