Delta Casino In Goa

GoaChronicle.com investigates further into the Peninsula’s land activities, its relationship with Delta Corp – a company known for its casino operations in Goa who is also currently under cloud for operating its off-shore ‘Casino Royale’ without appropriate government permissionsEven the matter of SEZ Land Allotment has been scrapped. The stock of Goa-based casino and gaming player has fallen 64.78% since December 31 2019. Currently, Delta Corp share stands at Rs 69.70 compared to the price of Rs 197.95 on December 31 last year.

Big Daddy Casino, owned by Golden Globe Hotels, is Goa's newest offshore casino. It launched in May 2019 and aims to give some serious competition to the Deltin Royale. The casino describes itself as the “biggest and most modern offshore gaming destination in Asia” with gaming equipment on par with Las Vegas and Macau. Delta Corp has announced that it is moving quickly to reopen its casinos in Goa, and its stock price rose about 3 percent in the wake of that announcement. Delta Corp share rises over 3% as casinos in Goa to resume operations (Business Today). Casino: Goa Operations: Overview: Asia's largest live offshore gaming casino with 5 operational decks; Covers an area of 40,000 sq. With gaming area of more than.

(i) Delta Corp Limited (“Delta Corp”) is the only listed company engaged in the casino (live, electronic and online) gaming industry in India. They, along with its Subsidiaries, currently own and operate casinos in India, in the states of Goa and Sikkim, offering approximately 1,800 gaming positions. In addition, they have also ventured into the fast-growing online gaming space through its acquisition of Gauss Networks Private Limited, which operates the online poker site ‘Adda52.com’.

The early-mover advantage has helped Delta Corp to secure a leadership position, with the Company holding three of the six offshore gaming licenses issued in Goa, one land-based casino in Goa and one in Sikkim; and three online gaming sites.

(ii) Delta corp operates Deltin Royale and Deltin JAQK, amongst the country’s two largest offshore casinos, and Deltin Caravela, the only floating hotel with a casino in India. The Company also owns and operates the Deltin Suites, a 106 room, all-suite hotel with a casino located in Goa. They also operate the Casino Deltin Denzong located at the Denzong Regency hotel in Gangtok, Sikkim.

They also own and operates The Deltin, a 176 room five-star hotel in Daman, which is an integrated resort with a proposed casino. They also own and operate the online poker site ‘Adda52.com’, the online rummy site ‘Adda52rummy.com’ and the online fantasy sports site ‘LeagueAdda.com’.

Buyback Type:	Open Market
Buyback Opening Date:	Apr 08 2020
Buyback Closing Date:	Oct 07 2020
Buyback Offer Amount:	₹ 125 Cr
Date of Board Meeting approving the proposal:	Mar 28 2020
Date of Public Announcement:	Mar 28 2020
Buyback Offer Size:	4.61%
Price Type:	Open Market
FV:	1
Buyback Price:	₹ 100 Per Equity Share

Details of Buyback:

The board has decided that the company will do a buyback of equity shares having a face value of Re. 1 (Indian Rupee One Only) each (the 'Equity Shares'), for an aggregate amount not exceeding Rs. 125 Cr ('Maximum Buyback Size') and at a price not exceeding Rs. 100/- per Equity Share ('Maximum Buyback Price'), payable in cash, from its shareholders / beneficial owners (other than those who are promoters, members of the promoter group or persons in control), from the open market.

Salient financial parameters:

Particulars( in Cr)	Mar-08	Mar-09	Mar-10	Mar-11	Mar-12	Mar-13	Mar-14	Mar-15	Mar-16	Mar-17	Mar-18	Mar-19
Sales +	103	101	132	376	365	425	559	300	375	455	608	798
Expenses +	57	60	86	188	264	335	434	237	255	294	361	483
Operating Profit	46	41	46	188	101	90	125	63	121	161	246	314
OPM %	45%	41%	35%	50%	28%	21%	22%	21%	32%	35%	41%	39%
Other Income	5	8	11	6	13	18	42	6	12	9	30	36
Interest	15	31	31	16	11	15	33	51	41	35	10	2
Depreciation	2	3	6	6	6	8	17	35	36	36	37	38
Profit before tax	33	15	21	172	96	85	117	-17	56	99	228	311
Tax %	40%	37%	39%	4%	30%	40%	44%	-64%	36%	28%	32%	37%
Net Profit	16	7	12	166	50	29	35	-23	38	74	156	197
EPS in Rs	1.06	0.36	0.59	8.11	2.11	1.22	1.51	0	1.66	3.18	5.81	7.26

Source: Screener.inDelta Corp is currently available at P/E of 8.26 based on 2018-19 earnings. The company has never available at this cheap valuation in the last 10 years.

How to Participate in buyback?

In this method of share Buyback, the company will be purchasing stocks from existing shareholders of the company directly from the market. Example: “Delta Corp Limited Buyback 2020” announces the buyback plan of its shares up to the price of Rs 100, it means that the company will be purchasing shares of 'Delta Corp Limited Buyback 2020' from the open market at a price not exceeding Rs.100 per share. Scenario 1- If the share price is below Rs.100 in that case, the company will put buy orders at the current market price and purchase shares. Scenario 2- If the share price is above Rs. 100, in that case, the company will put buy order at Rs. 100 only and if someone is ready to sell at Rs.100 or less then the only company will get back shares.

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