Delta Corp shares climbed by over 5% in today’s session, trading at ₹128.14, as the company garnered investor attention on the back of a positive outlook for the online gaming industry and strategic corporate restructuring.
India’s Chief Economic Advisor highlighted the importance of fostering innovation in the online gaming industry, emphasizing that regulators should not impede progress in this burgeoning sector.
Chief Economic Advisor V Anantha Nageswaran stressed the importance of regulatory accountability and innovation during his address at the Global Economic Policy Forum 2024, organized by the Ministry of Finance and Confederation of Indian Industry (CII) on December 11.
Nageswaran highlighted the need for regulators to distinguish between areas requiring strict oversight and sectors where innovation, such as online gaming, crypto, and bitcoins, should be encouraged. He emphasized, “Regulators should have self-accountability and not stand in the way of moonshot innovations, particularly in a country like India with significant financial illiteracy.”
He urged regulators to adopt the same transparency standards as the entities they oversee, including sharing information and being conscious of their unelected powers. “The same principle of transparency and social cost-benefit analysis we apply to regulated entities should also be applicable to the regulators themselves,” he added.
Delta Corp recently revised its demerger scheme, transferring the Dhargal project to Deltin Hotel & Resorts while allocating its hospitality and real estate businesses to Delta Penland, with a 1:1 share entitlement ratio for investors. This corporate restructuring is designed to:
- Unlock shareholder value by separating core business segments into distinct entities.
- Create focused operational streams, paving the way for streamlined growth in gaming, hospitality, and real estate sectors.
Over the past one month, the stock has gained 8.67%, recovering from its six-month decline of 5.45%. However, year-to-date, the stock remains down by 10.68%, reflecting the challenges it faced earlier in the year.
