Delta Corp tanks 13% on back of heavy volumes; stock hits 52-week low

The company's share price has tanked 19 per cent in two trading days after a media report suggested that DG GST Intelligence had booked Delta Corp for GST evasion

Shares of Delta Corp, which is engaged in casino gaming business, plunged 13 per cent at Rs 186 on Monday in early morning trade on the back of heavy volumes. The stock was trading at its lowest level since September 25, 2017.

In the past two trading days, the company's share price has tanked 19 per cent after a media report suggested that DG GST Intelligence had booked two Goa companies, including Delta Corp, for Rs 6,189 crore GST evasion.

According to a CNBC-TV18 report on Friday, the two companies evaded GST by camouflaging a mixed supply of services. The companies paid GST by artificially splitting values of services. GST was paid on net revenue of casino instead of Face Value of bet.

However, Delta Corp CFO said the company was in compliance with GST laws and did not evade any GST, the report said.

Since April 8, 2019, post-March quarter results, Delta Corp's stock has underperformed the market by falling 30 per cent. In comparison, the S&P BSE Sensex was down 3 per cent during the same period.

The stock price dip came after the company said the Government of Goa in the current period had notified revised license fees for onshore and offshore casinos operating in Goa.

Based on this notification, the increased offshore and onshore casino license fees for the group is Rs 30 crore, Rs 25 crore and Rs 10 crore in the current year as compared to Rs 11 crore, Rs 10 crore and Rs 5 crore respectively in the previous year ended 31st March 2018. 

At 10:40 am, the stock was trading 12 per cent lower at Rs 187 on the BSE, against a 0.21 per cent rise in the benchmark index. The trading volumes on the counter jumped seven times with a combined 5.3 million shares, representing 2 per cent of total equity of Delta Corp, changing hands on the BSE and NSE so far.