Delta Corp sinks 23% in 2 days post tax notice; Kacholia sells 0.6% equity

The stock was quoting at its lowest level since December 2020 after the company received a tax notice amounting to Rs 16,822 crore last Friday, September 22.

Shares of Delta Corp hit a 33-month low of Rs 134.70, as they slipped 6 per cent on the National Stock Exchange (NSE) in Tuesday’s intra-day trade as investor Ashish Rameshchandra Kacholia sold 1.5 million shares on Monday via open market.

In past two trading days, the stock of casino operator has tanked 23 per cent after the company received a tax notice totaling Rs 16,822 crore last Friday, September 22. It also received interest and penalty from the Directorate General of GST for the period July 2017 to March 2022.

At 09:18 AM; Delta Corp quoted 3.4 per cent lower at Rs 137.90, as compared to 0.04 per cent rise in the Nifty 50. The stock was trading at its lowest level since December 2020. A combined around 7.8 million shares had changed hands on the NSE and BSE so far.

In an exchange filing after market hours on Friday, Delta Corp informed that one tax notice for Rs 11,140 crore has been raised against Delta Corp. The other notice for Rs 5,682 crore has been raised against three of its subsidiaries -- Casino Deltin Denzong, Highstreet Cruises and Delta Pleasure Cruises.

Delta Corp said the amounts claimed in the DG Notices are inter alia based on the gross bet value of all games played at the casinos during the relevant period. Demand of GST on gross bet value, rather than gross gaming revenue, has been an industry issue and various representations have already been made to the Government at an industry level in relation to this issue. CLICK HERE FOR DETAILS

Meanwhile, investor Ashish Rameshchandra Kacholia offloaded 1.5 million shares representing 0.56 per cent equity of Delta Corp via block deal on the NSE, the exchange data shows. Kacholia sold shares at price of Rs 144.65 per share.