Delta Corp enters into share purchase agreement with Ability Games Limited - Check Details

Delta Corp, a listed company engaged in the casino gaming industry in India, has entered into a share purchase agreement with Ability Games Limited and Ashtek Consultancy Private Limited for sale of the its entire shareholding in Caravella Entertainment Private Limited. 

As part of the the agreement, Delta Corp will its stake Carvel Entertainment Private Limited, a wholly owned subsidiary which owns 89.29 per cent of the share capital of Deltin Nepal Private Limited (DNPL).

"The divestment represents an enterprise value of ₹ 80 crores comprising of ₹ 18 crores of parent debt and ₹ 62 crores of equity value on a nominal investment of ₹ 1 lakh equity," the company said in an exchange filing.

Meanwhile, shares of Delta Corp Limited were trading in red at the time of filing the story. However, the counter opened with a gain of 1.1 per cent at Rs 145.80. The scrip touched the day's high of Rs 147.10. Last seen, it was trading at Rs 141.40.
 
Earlier, the online gaming firm reported a 59 per cent year-on-year decline in its consolidated net profit for Q3 at Rs 34.48 crore on January 9, post-market hours. The company's income from operations stood at Rs 181.54 crore, 18 per cent lower than the year-ago period.

In a footnote alongside its Q3FY24 numbers, Delta Corp said that on September 27, 2023, the holding company and its two subsidiary companies received show cause notices from the Directorate General of GST Intelligence (DGGI), Hyderabad, for alleged short payment of Goods and Services Tax (GST) aggregating to Rs 16,822.9 crore for the period July 1, 2017, to March 31, 2022.