Delta Corporation, a listed gaming company, announced a foray into the real estate sector through a joint venture with Peninsula Land on November 30.
In a regulatory filing, Delta Corp said it 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 Delta Corp. Delta Corp and Peninsula Land will also start a joint venture of Rs 250 crore where Delta Corp will be the major shareholder.
“Considering that Delta’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 said in their press release.
Following the announcement, shares of Peninsula Land surged 5 percent and got locked in the upper circuit at Rs 48.63 in the BSE while Delta Corporation’s shares closed at Rs 146.5, up 9.37 percent, on November 30.
Delta Corp’s stock has struggled in the last six months as it fell 39.46 percent. The company’s subsidiaries had received tax notices after the GST council said 28 percent tax would be levied on online gaming and gambling companies. The company has a total tax shortfall liability of Rs 23,206 crore. The company’s subsidiaries, Deltatech Gaming, Casino Deltin Denzong, Highstreet Cruises and Delta Pleasure Cruises have received tax notices.
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