Delta Corp has approved a draft composite scheme to demerge its hospitality and real estate business into a newly-formed entity, Delta Penland Private Ltd (DPPL). Following the announcement, Delta Corp's shares surged by 7.66%, reaching Rs 139.15 on the BSE, while the broader BSE Sensex traded marginally lower.
According to the company’s stock exchange filing, all shareholders of Delta Corp will continue as ultimate beneficial owners of DPPL in the same proportion as their current holdings in Delta Corp. The shares of DPPL will be listed on the stock exchanges once the scheme becomes effective. The demerger will not impact employees, customers, or business partners.
Demerger Details
Delta Corp’s hospitality and real estate division includes Deltin Suites, a 106-room hotel with a casino in Goa; The Deltin, a 176-room five-star property in Daman; and a proposed 440-room hotel in Goa. The company also holds land in Dhargalim, Goa, intended for an integrated resort with a water park spread across 88 acres. As of March 31, 2024, the division reported a turnover of Rs 4.58 crore, contributing 0.72% of the company’s total revenue.
While DPPL will take over management responsibilities for The Deltin in Daman, the property will remain owned by Delta Corp.
Shareholding and Structure
Delta Corp’s shareholding pattern will remain unchanged post-demerger. In DPPL, the promoters will hold 33.26%, with the remaining 66.74% as public shareholding. DPPL is currently converting into a public company, awaiting necessary approvals.
Stock Performance
Over the past year, Delta Corp’s stock has fallen 9.6%, underperforming the BSE Sensex, which rose by 28.6%. Despite this, the stock saw a sharp rise following the demerger news.
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