Nazara Tech, Delta Corp surge up to 4.5% as Supreme Court set to hear online gaming GST challenge soon

Originally scheduled for July 15, the hearing sparked positive investor sentiment towards Mumbai-based Delta Corp, which saw its shares trading 2.32% higher at ₹143.5 on the BSE, and Nazara Tech, up 0.33% at ₹909.65 by 2:40 PM.

Approximately 30 gaming companies have filed pleas contesting retrospective GST notices totalling over ₹1.5 lakh crore, calculated at 28% on bet face values. In May, CJI Chandrachud had indicated the court would address challenges against tax notices from the I-T department in July, during proceedings related to a petition by Baazi Networks Private Limited, owner of Baazi Games.

Nazara Technologies, active in mobile games, esports, and sports media, and Delta Corp, known for operating offshore casinos alongside gaming and hospitality services, benefited from the news.

Separately, Nazara Technologies' gaming unit recently acquired 52,683 shares in Freaks 4U Gaming GmbH valued at ₹213 crore, increasing its stake to 57%, thereby making it a subsidiary.

Nazara Tech shares jumped 1.7% on July 15, hitting an intraday high of ₹922. At the current market price of ₹910.25 per share, the company’s market capitalisation stands at ₹6,967.2 crore. The stock hit a 52-week high of 989.55 on January 15, 2024, and a 52-week low of ₹590.85 on May 27, 2024.

Meanwhile, Delta Corp earlier this month, reported a significant decline in Q1 FY25 with consolidated net profit, dropping 67.6% year-on-year to ₹21.68 crore. Revenue from operations fell by 30% to ₹181 crore.

Delta Corp shares surged 4.6% on July 15, hitting an intraday high of ₹146.70. At the current market price of ₹143.5 per share, the company’s market capitalisation stands at ₹3,842.52 crore. The stock hit a 52-week high of 204.4 on July 28, 2023, and a 52-week low of ₹104.30 on June 4, 2024.