Delta Corp rises after board OKs raising Rs 750 cr

Delta Corp rose 1.36% to Rs 179.40 at 10:10 IST on BSE after the company said its board approved a proposal to raise Rs 750 crore through qualified institutional placements.

The announcement was made after market hours yesterday, 22 March 2017.

Meanwhile, the S&P BSE Sensex was up 83.46 points, or 0.29% to 29,251.14.

On the BSE, 4.07 lakh shares were traded in the counter so far, compared with average daily volumes of 8.76 lakh shares in the past one quarter. The stock had hit a high of Rs 181.20 and a low of Rs 178.05 so far during the day. The stock hit a record high of Rs 195.20 on 26 October 2016. The stock hit a 52-week low of Rs 62.50 on 23 March 2016.

The stock had outperformed the market over the past one month till 22 March 2017, rising 34.45% compared with 1.41% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 72.77% as against Sensex's 12.27% rise.

The mid-cap company has equity capital of Rs 23.16 crore. Face value per share is Re 1.

Delta Corp said its board of directors approved raising funds by issuing equity shares or other permissible securities through qualified institutional placements (QIPs) for an aggregate amount not exceeding Rs 750 crore. The company will seek approval from its shareholders for the fund raising plans and has called for an extraordinary general meeting on 18 April 2017.

The stock has risen 11.53% in three sessions from its close of Rs 160.85 on Monday, 20 March 2017. Shares of Delta Corp spurted 4.64% to settle at Rs 177 yesterday, 22 March 2017, on reports a domestic brokerage initiated coverage on the stock with a 'buy' rating and a target price at Rs 229. The brokerage reportedly cites the approval of a casino in Daman as a key upside trigger and sees gaming capacity to double.

Delta Corp's consolidated net profit rose 37.2% to Rs 10.06 crore on 4.5% increase in net sales to Rs 103.57 crore in Q3 December 2016 over Q3 December 2012.

Delta Corp holds three offshore gaming licences in Goa and has an integrated casino resort in Daman. The company also has three luxury hotel properties in Goa Deltin Suites, Deltin Palms and Villa Marina by Deltin.

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