Delta Corp rises 12% after gambling arm files DRHP, underperforming stocks
Shares of Delta Corp soared 12.4% to Rs 184.20 apiece on BSE on Friday in an otherwise weak market after Deltatech Gaming (DGL) filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering. DGL is a wholly owned subsidiary of Delta Corp.
The IPO of DGL will include a new issue of equity shares with a nominal value of Rs 1 each, for an amount aggregating up to Rs 300 crore and an offer for sale (OFS) of equity shares held by the company for an amount totaling up to Rs 250 crores.
The company said the IPO would be subject to market conditions, receipt of applicable approvals and other considerations. Once the offer is finalized, Deltatech Gaming will continue to be a subsidiary of Delta Corp, he said.
Delta Corp is the only publicly listed company active in the casino gaming industry (live, electronic and online) in India. He also has interests in hospitality and real estate.
However, despite the gain, Delta Corp’s stock has underperformed the market over the past month, falling 27% against a 6% drop in the S&P BSE Sensex. It hit a 52-week low at Rs 162.10 on Thursday.
So far in June, ace investor Rakesh Jhunjhunwala and his wife Rekha have sold 7.5 million shares of Delta Corp through an open market sale, according to a disclosure he made to the scholarships. After the transactions, Jhunjhunwala’s family stake in Delta Corp fell to 3.36% from 6.17% on May 31.
Jhunjhunwala and his wife jointly owned 7.48% of Delta Corp at the end of the March quarter.
Meanwhile, HDFC Mutual Fund said its plans increased stake in Delta Corp by 2.15% as of June 10, bringing the plans’ overall stake to 9.21% of the company’s paid-up share capital.
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