Delta Corp Limited shares jumped more than 8% in morning trade after the company announced the approval of a Composite Scheme of Arrangement for the demerger of its Hospitality and Real Estate business into a newly incorporated company, Delta Penland Private Limited (DPPL).
The decision was made during the Board of Directors meeting on September 24, 2024. This action would result in the formation of two separate listed entities: Delta Corp, which will focus on its core gaming business and DPPL, which will target the hospitality and real estate vertical.
The demerger aims to increase shareholder value by allowing each firm to engage in independent growth, improving operational efficiency and focusing on sector-specific strategy. The new firm, DPPL, would inherit Delta Corp’s hospitality assets, including Deltin Suites in Goa and The Deltin in Daman and its shares will be distributed to Delta Corp shareholders at a 1:1 share entitlement ratio.
As of 9:16 am, Delta Corp Limited shares were trading 7.13% higher at Rs 138.81 on the NSE.
