Rakesh Jhunjhunwala Stocks: Big Bull dumps additional 57.5 lakh equity shares in Delta Corp; stock plunges nearly 10% intraday

Billionaire investor Rakesh Jhunjhunwala-backed gaming and technology company – Delta Corp shares slumped nearly 10 per cent intraday to Rs 166.65 per share on the BSE on Monday. 

Weakness was on account of Jhunjhunwala dumping an additional 57.5 lakh equity shares of the company at Rs 167.17 apiece via an open market transaction on Friday, June 17, 2022, as per the data available on the BSE. The names of the buyers were not ascertained immediately. 

Previously during June 1-14, Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala had sold around 75 lakh equity shares of Delta Corp through an open market sale.  

After the transactions, Jhunjhunwala’s family’s stake in Delta Corp had decreased to 3.36 per cent from 6.17 per cent on May 31. Jhunjhunwala and his wife together had held a 7.48 per cent stake in Delta Corp at the end of the March quarter. 

Similarly, HDFC Mutual Fund said its schemes have increased shareholding in Delta Corp by 2.15 per cent as of June 10, taking the aggregate holding of the schemes to 9.21 per cent of the paid-up equity share capital of the company. 

The stock in the last one month has slipped around 28 per cent as compared to a nearly 5.5 per cent fall in the S&P BSE Sensex during the same period. 

Delta Corp shares gained 12 per cent on Friday after its arm Deltatech Gaming (DGL) filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for a public offer. 

The initial public offer will comprise a fresh issue of equity shares of the face value of Rs 1 each, for an amount aggregating up to Rs 300 crore and an offer for sale (OFS) worth up to Rs 250 crore. 

The company said the IPO will be subject to market conditions, receipt of applicable approvals, and other considerations. Upon completion of the offer, Deltatech Gaming will continue to be a subsidiary of Delta Corp, it said.