Casino operator Delta slumps 18% as GST notice spooks Street
casino operator Delta Corp plunged 18% on Monday on news the company and its subsidiaries got tax notices for ₹16,800 crore from the Directorate General of GST (Goods and Services Tax) Intelligence. The development spooked investors as the claims were over four times the company's market value of ₹3,829 crore on Monday.
The stock hit a 52-week low of ₹140.20 before closing at ₹143.
On the BSE, over 7 million Delta shares changed hands as against the two-week daily average of 352,000 shares. Investor Ashish Kacholia sold 1.5 million shares worth over ₹21 crore at ₹144.65 apiece on the NSE in Monday's trade, according to the exchange's deal data.
«The tax notice to Delta Corp is four times its market cap, so it's natural that the stock will correct sharply,» said Ambareesh Baliga, a Mumbai-based market analyst.
«The misunderstanding seems to be between the gross bet value and gross gaming revenue. The resolution of this issue could take considerable time as the same issue would be there across the rest of the players in the industry.»
Delta, in disclosures to stock exchanges, said the Directorate General of GST Intelligence has directed the company and its units to pay the tax along with interest and penalty for the period from July 2017 to March 2022.
«The amount claimed in the DG Notice is inter alia based on the gross bet value of all games played at the casinos during the relevant period,» said the company in its disclosure.
Delta Corp said it will challenge the 'arbitrary' tax demand.
