Delta Corp cracks 9%, stock nears 52-week low amid taxation uncertainty

The GST Council has decided to refer the report of the Group of Ministers on casinos, online gaming and horse racing back to the panel of ministers for further deliberation.

Shares of Delta Corp tanked 9 per cent to Rs 165.15 on the BSE in Thursday’s intra-day trade, and were down as much as 11 per cent from its day’s high amid the uncertainity over taxation on casinos. 

The GST Council on Wednesday decided to refer the report of the GoM (Group of Ministers) on casinos, online gaming and horse racing back to the panel of ministers for further deliberation.

The finance minister of Goa wanted further discussions on GST rate to be applicable on casinos and in that context both online gaming and horse racing too would be relooked. The panel had recommended 28 per cent GST levy on all three activities and equalled them to gambling. The report is expected to be ready by July 15 and would be taken up by the council in its next meeting in August, the Business Standard reported. CLICK HERE FOR FULL REPORT

Thus far in the month of June, the stock price of Delta Corp has declined 24 per cent after ace investor Rakesh Jhunjhunwala sold partial stake in the company via open market. The stock had hit a 52-week low of Rs 162.10 on June 16, 2022. In comparison, the S&P BSE Sensex has declined 4 per cent so far this month.

On June 17, 2022, Rakesh Jhunjhunwala had reduced his stake in Delta Corp by 2.15 percentage points through block deals. Jhunjhunwala sold these shares at Rs 167.17 per share aggregating to Rs 96 crore. The names of the buyers were not ascertained immediately.

Post transactions, Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala's holding in Delta Corp has now declined to 1.2 per cent or 3.25 million shares from 3.36 per cent as on June 14, 2022.

Previously during June 1-14, the two had sold 7.5 million equity shares of Delta Corp through open market sale. After the transactions, Jhunjhunwala’s family’s stake in Delta Corp had decreased to 3.36 per cent from 6.17 per cent on May 31. Jhunjhunwala and his wife together held 7.48 per cent stake in Delta Corp at the end of the March quarter.

Meanwhile, HDFC Mutual Fund said its schemes have increased shareholding in Delta Corp by 2.15 per cent as of June 10, taking the aggregate holding of the schemes to 9.21 per cent of the paid-up equity share capital of the company.

On June 6, Delta Corp’s arm Deltatech Gaming (DGL) filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering. 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.