Delta Corp up 1% post bulk deal in its shares

On September 22, the casino operator was slapped with a tax notice amounting to Rs 16,822 crore

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Shares of Delta Corp Ltd were up approximately 1.36 percent on October 5 following reports of a bulk deal in the company's shares. At 12.30 pm, the stock was trading at Rs 137.65 on the National Stock Exchange, up 1.36 percent from its previous close.

According to CNBC TV18 reports, 17.7 lakh shares — equivalent to 0.7 percent of the equity — worth Rs 24.3 crore changed hands at an average price of Rs 137.9 per share. The identities of the buyer and seller of these shares were undisclosed.

On the contrary, Delta Corp's share price slumped by over 4 percent during trading on October 3 due to the implementation of a 28 percent Goods and Service Tax (GST) for online gaming, which became effective from October 1. Previously, the GST rate for platform fees on online gaming platforms stood at 18 percent.

The Central GST Act has undergone revisions, resulting in online gaming, casinos and horse racing now being categorised as "actionable claims" subject to the same 28 percent GST as lotteries, betting and gambling. Amendments to the Integrated GST (IGST) Act also necessitate offshore online gambling platforms to register in India and adhere to domestic law by paying a 28 percent tax.

Over the past month, the casino operator has encountered a series of negative developments, leading to investors offloading their shares. On September 22, the company received a tax notice amounting to Rs 16,822 crore. Delta Corp has expressed its intent to contest the tax notice, clarifying that it pertains to Delta Corp and its two subsidiaries, namely Highstreet Cruises and Entertainment Pvt Ltd and Delta Pleasure Cruise Company Pvt Ltd.

Delta Corp currently operates in the gaming, hospitality, and online skill gaming segments.