Indian nets $100mn via PartyGaming stake sale

One of the two Indian founders of online poker company PartyGaming has hit a jackpot of $100 million (about 50 million pounds) by selling more than half of its holding in the company.

Vikrant Bhargva, former marketing director who had quit his position last year, yesterday sold 160 million shares, accounting for about 4% stake in the company, at a price of 30.5 pence a share.

Bhargava, who had co-founded PartyGaming with another Indian and a fellow student at IIT Delhi Anurag Dikshit, now holds less than 3% stake in the company. Dikshit remains the largest shareholder with 29% stake.

Bhargava had left the company in August last year to join a new hedge fund of funds Sirius. He is believed to have invested the proceeds from the sale of his stake in this fund.

The two Indians had founded the company with other two founders, former internet porn enterpreneur Ruth Parasol and her husband Russ DeLeon, who each hold a 15% stake. None of the four promoters are involved with the company's day-to-day operations.

The sale of shares by Bhargava follows a plunge of nearly 60% in the London-listed company's share price after a crackdown on internet gambling in the US, from where PartyGaming's most of the business revenues originated.

Subsequently, the Gibraltar-based company had started focussing on European and emerging markets, while it had sold its US operations for a token amount of $1.

The company had closed down its 800-employees strong call centre in Bangalore after shutting US operations.