Delta Corp, a prominent player in gaming industry, has found itself in the eye of a financial storm. The company, which has been witnessing a downward spiral in its share prices over the past six trading sessions, is grappling with significant tax notices from the Directorate General (DG) of GST Intelligence.
The recent development that has captured market attention is the bulk sale of 15,00,000 Delta Corp shares by seasoned investor Ashish Kacholia. The shares were sold at an average price of Rs 144.65 through bulk deals. Interestingly, as of the June quarter data, Kacholia did not hold more than 1 per cent stake in the casino operator. This sale is a big change from how much of Delta Corp's shares Kacholia usually owns, as shown in the corporate database AceEquity.
Adding to the turbulence, Delta Corp recently received tax notices totalling a staggering Rs 16,822 crore from the DG of GST Intelligence. This includes a notice for Rs 11,140 crore and another for Rs 5,682 crore related to three of its subsidiaries. The taxation demand is based on the gross bet value of all games played at the casinos during the relevant period, rather than the gross gaming revenue. The way they're taxing us has been bothering the industry for a long time. Delta Corp firmly says this tax demand is unfair and not according to the rules. The company is determined to use all the legal options they have to fight against this tax demand and all that comes with it.
In terms of ownership shifts, veteran investor Rakesh Jhunjhunwala and his spouse Rekha Rakesh Jhunjhunwala were former stakeholders in Delta Corp but divested their stakes in 2022. As of now, they no longer hold over 1% stake in company. On the contrary, seasoned investor Mukul Agrawal increased his stake in Delta Corp during the June quarter, holding 3,300,000 shares compared to 3,000,000 shares in the March quarter. This surge in ownership represents a 1.23 per cent stake in the company for the first quarter, up from 1.12 per cent in the preceding quarter.
As the market keeps a keen eye on Delta Corp amidst these dynamics, the trajectory of its shares remains a subject of speculation. People who invest money and those who analyze these investments are watching Delta Corp very carefully. They want to see how the company deals with its problems and protects its interests and the value of its shareholders' investments. The gaming industry in India is already being watched closely by regulators, which means they're keeping a very close eye on it. This makes it very important for companies like Delta Corp to handle their financial and ownership challenges in a smart way.