Head Digital Works acquired a 51% stake in Deltatech Gaming Limited

HIGHLIGHTS :

• Delta Corp is selling its skill gaming unit, Deltatech Gaming, to Head Digital Works in a Rs 491 crore cash-and-stock deal.
• Head Digital Works operates online rummy and poker platforms under the A23 brand.
• Delta Corp will receive a 2.8% stake in Head Digital Works, which will increase to 5.7% post-merger.
• Deltatech Gaming will fully merge into Head Digital Works before June 2026.
• The deal strengthens Head Digital Works' position in the online gaming sector, particularly poker and rummy.

On February 2, Casino and hospitality giant Delta Corp announced that they are selling the company's skill gaming unit Deltatech Gaming to Head Digital Works for a total consideration of about Rs 491 crore in a cash-and-stock deal. Head Digital Works operates online rummy and poker platforms under the A23 brand.

The transaction will occur in two stages, paying Rs 34.8 crore in cash and swapping its equity shares with the company. Head Digital Works will initially acquire a 51 percent stake in Deltatech Gaming by April 6, 2025. As per the stock market filing, this will give Delta Corp a 2.8 percent stake in Head Digital Works.

This will be followed by a merger of Deltatech Gaming into Head Digital Works. Delta Corp will hold a 5.7 percent stake in Head Digital Works after the completion of the merger. The merger is expected to be completed before June 2026.

“We’re excited for this journey with Deepak (Gullapalli, founder of Head Digital Works) and the team, whose leadership has been instrumental in shaping the online Rummy market in India. We believe that this transaction will help Adda52’s leading position in the online poker market” said Ashish Kapadia, Managing Director, Delta Corp.

Back in June 2022, Delta Corp had initial plans to go public with Deltatech Gaming by filing for a Rs 550 crore IPO. But, it halted the process in August 2023, due to uncertainties related to the revised GST rates.