BUSINESS

Shares of Delta Corp. plunge 20% to a 33-month low; here’s why

After receiving tax notifications of Rs 16,822 crore from the Directorate General of GST Intelligence on Friday, Delta Corp shares started 15% down on the market. This demand, according to sources, is for the time frame of July 2017 through March 2022.

The original notice, which amounts to Rs. 11,140 crore, was sent to Delta Corp. immediately. Three of its companies, Casino Deltin Denzong, Highstreet Cruises, and Delta Pleasure Cruises, have been served with the second notice, which is for Rs 5,682 crore.

Delta Corp claims that the GST demand is based on the gross bet value, not the gross gaming value, in a late-night exchange filing on Friday. The business plans to file a lawsuit to challenge this ruling. Additionally, Delta Corp has emphasized that these tax demands are a general problem impacting the whole industry rather than being exclusive to the corporation.

It’s crucial to remember that the stock is now subject to the F&O prohibition, which forbids the opening of new holdings in the company.

In July of this year, Delta Corp shares fell 23% in a single day when the GST Council increased the GST rates on casinos from 18% to 28%. The share price of the company has decreased by 17.50% to Rs 144.70. The price of Delta Corp. shares has dropped 35% so far in 2014.

The company’s market value decreased by Rs 1,500 crore as a result of the loss on July 12th, exceeding its whole income for the fiscal year 2023, which was Rs 1,021 crore.

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