Delta Corp Shares Rejoice After Calcutta High Court Grants Relief On Rs 6,384 Cr GST Notice, Stock Up 2%

Delta Corp shares traded in the green on Thursday, a day after the company informed that the High Court of Calcutta has provided interim relief to Deltatech Gaming Limited (DGL) in connection with the alleged tax shortfall of Rs 6,384 crore payment in goods and services tax (GST).

As per the company, the court has directed that no effect be given to any order passed by the tax authority concerning the show-cause notice. In an exchange filing on Wednesday, the company said, "Pursuant to a writ petition filed by DGL before the Hon'ble High Court of Calcutta challenging the above demand, the Hon'ble High Court has granted interim relief to DGL and directed that no effect shall be given to any order passed by the Tax Authority in relation to the show cause notice for the above demand without the leave of the Hon'ble High Court."

Today, the share price of small-cap Tourism and Hospitality stock Delta Corp Ltd was up 2.05% at Rs 141.80 per share at 12:47 pm IST. In the intraday trade, the stock saw a spurt in trading volume by more than 1.93 times.
The stock has a 52 Wk High of Rs 259.95 which it reached on June 28, 2023.

Recently, Delta Corp Ltd. (Delta), which owns and operates casinos and hotels in Goa, Sikkim, Daman, and Kathmandu (Nepal) announced its decision to make a strategic investment of Rs 99,99,88,000/ in Peninsula Land Ltd. (PLL) which will issue 1,50,00,000 equity shares and 77,27,000 CCDs at Rs 44/-. Furthermore, a joint venture is envisaged to be established between Delta & PLL with a capital outlay of Rs 250 crores where Delta will be a majority stakeholder. This JV will help Delta expand into the sector.

PLL, a prominent real estate developer, with over 22 years of experience in real estate, 19 successfully executed projects, and having 2 under-construction projects, and with a pipeline of projects under consideration is a perfect option for a Joint Venture. PLL's strong operational performance in the last five years saw it reduce its debt by over 90%.

Delta Corp Share Price Performance

The company has been in distress ever since the GST Council decided to impose 28% GST on the gaming industry.
The Delta Corp stock price has slipped 41% in the six months, 34.27%% year-to-date and 38% in the last one year. In the last two years, the returns from the stock have fallen 45%.

About Delta Corp Ltd.:

Deltin is India's leading brand in luxury gaming and hospitality owned by Delta Corp Ltd., which owns and operates casinos and hotels in Goa (India), Sikkim (India), Daman (India), and Kathmandu (Nepal). Deltin has redefined the industry by creating a holistic and unparalleled guest experience. Deltin, with its state-of-the-art floating casinos, land-based casinos, and 5-star hotels, promises an ideal mix of gaming, entertainment, and hospitality. The brand has three offshore casinos and one 5-star hotel in Goa, a luxurious 5-star resort in Daman, and two land-based casinos, one each in Sikkim and Nepal. Delta through its wholly owned subsidiary Delta Tech Gaming Ltd. also owns and operates an online poker site 'Adda52.com'