Delta Corp shares zoom up to 10% on demerger of real estate and hospitality arm

The company informed the stock exchanges in a filing that its Board in the meeting held on September 24, 2024, approved the demerger of its hospitality and real estate business.

The wholly-owned subsidiary of Delta Corp, Delta Penland Private Limited (DPPL), a newly incorporated company, will now house the hospitality and real estate business, the company informed the bourses.

DPPL is in the process of converting from a private limited company to a public company and necessary approvals in this regard are awaited, the filing mentioned.

Delta Corp is in diversified segments like casino gaming, online gaming, hospitality and real estate.

The company’s hospitality and real estate business includes its Deltin hotel with a casino in Goa, a resort and land assets.

Its hotel, Deltin Suites, is a 106-room hotel with a casino located in Goa while The Deltin, a 176-room five-star deluxe property, is the largest integrated resort spread over 10 acres in Daman.

A 440-room hotel, Marvel Resorts, spread over 8,000 square metres in Goa is also under construction. It also has land assets in Dhargalim, Goa. It plans to develop an integrated resort with a water park spread over 88 acres.

The company also holds investments in hospitality and real estate companies.

Delta Corp will continue to own The Deltin, Daman, and will sign an agreement with DPPL for its management, the company stated in a filing.

“Upon the Scheme becoming effective, all shareholders of the Company are and will be the ultimate beneficial owners of the Resulting Company in the same ratio (inter se) as they hold shares in the Company,” Delta Corp said.

After the demerger announcement, Delta Corp shares surged as much as 9.87% to hit an intraday high of ₹142.18 per share on the NSE in early trade.

The stock later pared some of the gains and was trading 4.51% at ₹135.3 apiece at 11:12 am.