Delta Corp shares gain 10% after board approves demerger of hospitality and real estate business | Stock Market News
Source: Live Mint
Shares of Delta Corp, an online gaming firm, surged by 10 per cent in early morning trading today, reaching ₹142.20 per share after the company announced the demerger of its hospitality and real estate business. The Board of Directors approved this demerger during a meeting held on September 24, 2024, through a Composite Scheme of Arrangement.
Delta Penland Private Limited (DPPL), a wholly owned subsidiary of Delta Corp, will manage the hospitality and real estate business. DPPL is currently in the process of converting from a private limited company to a public company, pending the necessary approvals.
The Hospitality and Real Estate segment of Delta Corp includes several key assets: Deltin Suites, a 106-room all-suite hotel with a casino in Goa; The Deltin, a 176-room five-star deluxe property and the largest integrated resort spanning 10 acres in Daman; Marvel Resorts, a proposed hotel with approximately 440 rooms under advanced construction in Goa; and land in Dhargalim, Goa, earmarked for developing an integrated resort with a water park over 88 acres, as per the company’s regulatory filing.
The company also holds investments in various hospitality and real estate ventures. This demerger is expected to allow Delta Corp. to concentrate on its core gaming business, enhancing operational efficiency and accountability.
The scheme is subject to approval from the company’s shareholders, stock exchanges, SEBI, NCLT, and other necessary regulatory bodies, which is expected to take between 10 to 12 months.
Once the scheme becomes effective, all shareholders of the company will be the ultimate beneficial owners of the resulting company in the same proportion as they hold shares in the current company.
The shares of the resulting company will be listed on the stock exchanges following the scheme. According to the company, this scheme will not impact employees, customers, or business partners.
Stock performance
The company shares have been on a downward trend since July 2023 and have so far lost 31.5 per cent of their value. Delta Corp is the only listed company engaged in the gaming (live, electronic, and online) and hospitality space in India.
Incorporated in 1990 as a textiles and real estate consultancy company, Delta Corp. has evolved into diversified segments like casino gaming, online gaming, hospitality, and real estate. Delta Corp., along with its subsidiaries, owns and operates the ‘Deltin’ brand of luxury casinos in the states of Goa and Sikkim.
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