Shares of Delta Corporation jumped over 6 percent on December 1, a day after it announced a foray into the real estate sector through a joint venture with Peninsula Land. Delta Corp will invest Rs 99.99 crore in Peninsula Land, which will issue 1.5 crore equity shares and 77.27 lakh CCDs at Rs 44 to the listed gaming company.
Both firms will also start a joint venture of Rs 250 crore where Delta Corp will be the major shareholder, the company said in a regulatory filing.
“Considering that Delta Corp’s flagship project at Dhargalim, Goa has been deferred and given its free reserves and cash flows, the company sees a compelling opportunity for long-term growth in this sector,” Delta Corp said.
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At 9:33 am, Delta Corp shares were trading 6.04 percent higher at Rs 150.20 on the National Stock Exchange. So far this year, the stock has fallen 30 percent, underperforming the benchmark Nifty.
Delta Corp’s stock has been in slump in the last six months falling around 38 percent as the company’s subsidiaries Deltatech Gaming, Casino Deltin Denzong, Highstreet Cruises, and Delta Pleasure Cruises had received tax notices after the GST council levied 28 percent tax on online gaming and gambling companies. It has a total tax shortfall liability of Rs 23,206 crore.
The Directorate General of GST Intelligence, Hyderabad on September 22 issued three demand notices against the company including a demand of over Rs 628 crore for the shortfall of tax paid by Delta Corp in relation to Casino Deltin Denzong based out of Sikkim.
The company on October 14 updated stock exchanges that its subsidiary Deltatech Gaming Limited had received intimation from the Directorate General of GST Intelligence, Kolkata for payment of Rs 6,236.81 crore for the shortfall in taxes.
Also Read | Delta Corp announces entry into real estate via JV with Peninsula Land, shares gain
Delta Corp stock zoomed as much as 10 percent in the previous session amid reports that the Calcutta High Court granted interim protection to the casino and online gaming company, in response to a Rs 6,000-crore show cause notice (SCN) issued by the Directorate General of GST Intelligence, Kolkata.
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