DSIJ Mindshare

Late Rakesh Jhunjhunwala Portfolio Stock: Is set for Demerger
Pushkar Shinde
/ Categories: Trending, Mindshare

Late Rakesh Jhunjhunwala Portfolio Stock: Is set for Demerger

Delta Corp Announces Demerger of Hospitality and Real Estate Business

Delta Corp Limited, a prominent player in India's gaming and hospitality sectors, has announced the demerger of its Hospitality and Real Estate business into a newly formed company, Delta Penland Private Limited (DPPL). This strategic move is aimed at enhancing operational efficiency, unlocking shareholder value, and providing targeted investment opportunities across distinct business verticals.

Demerger Details

The decision, approved by Delta Corp Board of Directors on September 24, 2024, will see DPPL, currently a wholly-owned subsidiary of Delta Corp, taking over the company’s Hospitality and Real Estate assets. These assets include the Deltin Suites, a 106-room casino-hotel in Goa, and The Deltin, a 176-room five-star resort in Daman. The proposed Marvel Resorts, a 440-room property under construction in Goa, and land for a future integrated resort in Dhargalim, Goa, will also be transferred to DPPL.

DPPL will soon convert to a public company, and its shares will be listed on the stock exchanges. Upon the scheme's completion, existing Delta Corp shareholders will receive 1 share of DPPL for every 1 share they hold in Delta Corp. The demerger is expected to take 10-12 months, subject to approvals from shareholders, SEBI, and other regulatory bodies.

Rationale for the Demerger

The primary goal behind this demerger is to create distinct entities focusing on different core businesses. Delta Corp will concentrate on its gaming business, which includes live, electronic, and online gaming, while DPPL will focus exclusively on Hospitality and Real Estate. This clear demarcation is expected to enhance management accountability and operational efficiency.

DSIJ offers a service 'Tiny Treasure' with recommendations for Small-Cap stocks based on research and analysis to help subscribers make informed investment decisions. If this interests you, then do download the service details pdf here

Q1FY25 Results:

Delta Corp revenue from operations dropped 30.3% year-on-year to Rs.180.7 crore in Q1FY25, down from Rs.259.3 crore in Q1FY24, with gaming operations, its primary revenue source, declining 33% to Rs.169.42 crore. The company's hospitality segment also struggled, contributing to the revenue decline. EBITDA plunged 68.2% to Rs.30.5 crore, with the EBITDA margin shrinking to 16.9% from 36.9%, indicating significant pressure on operating profitability.

Previous Article From Rs 44.02 To Rs 114.56 Per Share In Just 11 Months: Multibagger EV-Stock With 33,500 Per Cent Returns; Hit Upper Circuit On September 26
Next Article FIIs Took A Fresh Entry & Bought Over 1 Per Cent Stake In Q1: Multibagger Penny Stock Below Rs 5 Hit 52-Week High On September 26
Print
373 Rate this article:
3.5
Please login or register to post comments.
DALAL STREET INVESTMENT JOURNAL - DEMOCRATIZING WEALTH CREATION

Principal Officer: Mr. Shashikant Singh,
Email: principalofficer@dsij.in
Tel: (+91)-20-66663800

Compliance Officer: Mr. Rajesh Padode
Email: complianceofficer@dsij.in
Tel: (+91)-20-66663800

Grievance Officer: Mr. Rajesh Padode
Email: service@dsij.in
Tel: (+91)-20-66663800

Corresponding SEBI regional/local office address- SEBI Bhavan BKC, Plot No.C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra.
Tel: +91-22-26449000 / 40459000 | Fax : +91-22-26449019-22 / 40459019-22 | E-mail : sebi@sebi.gov.in | Toll Free Investor Helpline: 1800 22 7575 | SEBI SCORES | SMARTODR