Delta Corp shares spurt 10% as board approves demerger of hospitality and real estate business

Delta Corp shares in Wednesday's trade surged up to 10 per cent to day's high price of Rs 141.85 as the company's board approved the demerger of its hospitality and real estate business. Shares of the company at the last count surged 5.69 per cent or Rs 7.35 per share at Rs 136.6 per share.

Now, as the company's gaming business will be demerged from the company's hospitality and real estate business segments. 

The Hospitality and Real Estate business inter alia includes Deltin Suites, a 106-room, all-suite hotel with a casino located in Goa; The Deltin. The company also holds investments in hospitality and real estate companies.

Delta Penland Private Limited (“DPPL” or “Resulting Company”) is a newly incorporated company and shall carry on the hospitality and real estate business. DPPL is a wholly owned subsidiary of the Company. DPPL is in the process of converting from a private limited company to a public company and necessary approvals in this regard are awaited, added the release.

For every 1 share of Delta Corp, company will allot 1 share of Delta Penland. Further, it is estimated the company's denerger is likely to be completed in 10-12 months. 

What will constitute the company's hospitality and real-estate business?

Goa: Deltin Suites, a 106-room all-suite hotel with a casino
Daman: The Deltin, five-star deluxe resort with 176 rooms
Goa: Marvel Resorts, a 440-room hotel (currently under construction)

In addition, the company also has investments in the real estate and hospitality business of other companies.

Demerger to enable value-unlocking 

The demerger will enable value unlocking of the different businesses. Also, it will help investors invest in their desired sector and also on part of the company it will help in better focus on the company's different business verticals.