The significant activity in Delta Corp. occurred shortly after the board of Nazara Technologies authorized the issuance of shares to the founders of Zerodha, Nikhil and Nithin Kamath, in an amount totaling Rs. 100 crore.
The agreement was reached two months after the GST Council announced its intention to charge casinos a 28 percent Goods and Services Tax (GST).
On September 4, after shares worth Rs 45.6 crore changed hands, Delta Corp. stock increased by more than 2% in the afternoon trade. With 7.5 million shares changing hands at 2:15 p.m., the stock’s NSE quote was Rs 186.60.
About 1% of Delta Corp’s total equity is represented by the transaction. It was impossible to immediately identify the buyers and vendors.
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The agreement was made two months after the GST Council announced that casinos would be subject to a 28 percent Goods and Services Tax (GST). The stock has undergone a 20 percent correction after this.
The full face value of chips purchased for use in games must now be subject to a GST of 28%, per the new regulations. In contrast, offline casinos previously had to pay a GST of 28% on their whole gaming earnings.
While the new GST law has dampened investor enthusiasm, others have expressed their admiration for the long-term opportunity presented by the gambling sector. The IPO of Deltatech Gaming, a subsidiary of Delta Corp that also operates in the online gaming industry, has been postponed.
Following the Nazara Technologies board’s approval of the issuance of shares worth Rs 100 crore to Zerodha’s founders Nikhil and Nithin Kamath, there has been a significant activity in Delta Corp.
“Gaming in India was poised for strong growth in the years to come, and Nazara had built a well-diversified, profitable gaming platform well-suited to take advantage of opportunities in the years ahead,” said Nikhil Kamath.
