Delta Corp gains 9% as gaming arm files IPO papers with Sebi

Shares of Delta Corp soared 9 per cent to Rs 179.25 on the BSE in Friday’s intra-day trade in an otherwise a weak market after Deltatech Gaming (DGL) filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offer. DGL is a wholly owned subsidiary of Delta Corp.

DGL’s IPO will comprise a fresh issue of equity shares of face value of Re 1 each, for an amount aggregating up to Rs 300 crore and an offer for sale (OFS) of the equity shares held by the company, for an amount aggregating up to Rs 250 crore.

The company said the IPO will be subject to market conditions, receipt of applicable approvals and other considerations. Upon completion of the offer, Deltatech Gaming will continue to be a subsidiary of Delta Corp, it said.

Delta Corp is the only listed company engaged in the casino (live, electronic and online) gaming industry in India. The company is engaged in diversified segments like casino gaming, online gaming, hospitality and real estate.

However, despite today’s gain, the stock of Delta Corp has underperformed the market in the past one month by falling 27 per cent as compared to 6 per cent decline in the S&P BSE Sensex. It hit a 52-week low of Rs 162.10 on Thursday, June 16, 2022.

Thus far in the month of June, ace investor Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala have sold 7.5 million equity shares of Delta Corp through open market sale, according to disclosure made by him to the stock exchanges. Post transactions, Jhunjhunwala’s family stake in Delta Corp has decreased to 3.36 per cent from 6.17 per cent as on May 31, 2022.

Rakesh Jhunjhunwala (4.30 per cent) and Rekha Jhunjhunwala (3.18 per cent) collectively held 7.48 per cent stake in Delta Corp at the end of March quarter, the shareholding pattern data shows. CLICK HERE FOR MORE

Meanwhile, HDFC Mutual Fund said that there has been an increase in the shareholding of Delta Corp by the schemes of HDFC Mutual Fund by 2.15 per cent as of June 10, 2022. As on June 10, 2022 the aggregate holding of the Schemes of HDFC Mutual Fund in the Company is 9.21 per cent of the paid up equity share capital of the Company, HDFC Mutual Fund said.

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