Delta Corp Ltd's shares rose over 10% in Wednesday trading after the diverse company's board announced plans to demerge its hospitality and real estate businesses to allow management to focus on its core sector, gaming. Delta Corp informed stock exchanges that the scheme is subject to shareholder, stock exchange, SEBI, and NCLT approval, which is expected to take 10 to 12 months.
Delta Corp stated that the move will unlock value because it does not receive the desired value for its hospitality and real estate businesses due to its reputation as a gaming company. Delta Corp stated that the scheme will create value for the firm's shareholders by issuing one equity share of the resulting company, which will be listed under the scheme, for every one share held in the company.
Following the development, the stock surged 9.74 percent to a high of Rs 141.85 on the BSE. The stock is up 19% in the last six months, but it is down 7.60% in 2024 thus far. Once the plan is implemented, there will be two distinct listed companies. The new company will focus solely on hotels and real estate, while Delta Corp will continue to operate in the gambling industry.
Delta Corp is currently involved in the live, electronic, and internet gaming industries. It is also involved in the real estate and hospitality industries. The Deltin, a 106-room all-suite hotel with a casino located in Goa; Marvel Resorts, a proposed 440-room hotel spread over 8,000 square meters in Goa currently under advanced stage of construction; and land situated in Dhargalim, Goa, where it is proposed to develop an integrated resort with a water park spread over 88 acres, are among the hospitality and real estate business's offerings.
Delta Penland Private Limited, often known as the "Resulting Company" or "DPPL," is a recently established organization that will engage in the hospitality and real estate industries. The Company owns a wholly-owned subsidiary in DPPL. The essential permissions are awaited as DPPL transitions from a private limited company to a public business, according to Delta Corp.
In the same proportion (inter se) as their shares of the firm, all shareholders of the company are and will be the ultimate beneficial owners of the resultant company once the scheme goes into operation, according to Delta Corp.
In accordance with the Scheme, the shares of the Resulting Company will be listed on public exchanges. The plan won't affect our business partners, staff, or clients," it stated.
