Delta Corp rose 1.20% to Rs 257.50 at 9:22 IST on BSE after the company said it signed an agreement to acquire Jalesh Cruises Mauritius for $10 million.
The announcement was made after market hours on Friday, 8 March 2019.Meanwhile, the S&P BSE Sensex was up 232.55 points, or 0.63% to 36,903.98.
On the BSE, 16,000 shares were traded in the counter so far compared with average daily volumes of 1.60 lakh shares in the past two weeks. The stock had hit a high of Rs 260.10 and a low of Rs 257 so far during the day. The stock hit a 52-week high of Rs 324.50 on 13 March 2018. The stock hit a 52-week low of Rs 198.10 on 20 July 2018.
Delta Corp said that its wholly owned subsidiary, Gaussian Software, has entered into an agreement on 8 March 2019 to subscribe 10,000,000 equity shares of Jalesh Cruises Mauritius (JCML) for $10 million. The acquisition is proposed to be completed in one or more tranches and the company is expected to hold over 25% stake in JCML.
JCML, promoted by Amit Goenka, proposes to acquire cruise ships and operate cruise services to various destinations from India and the Middle East. The cruise ships will have various entertainment and hospitality avenues, including casinos and gaming centres. As a part of the investment, the company has also obtained the right to be the preferred partner to manage and operate t he casinos and similar gaming centres on such cruise ships through its group companies. JCML was incorporated on 16 December 2011 under the laws of Mauritius to undertake investment business, and has NIL turnover from such activities in the last three financial years.
The transactions contemplated in the agreement are expected to be completed by 30 June 2019, in one or more tranches, subject to completion of conditions precedent, and do not require statutory/regulatory approvals. The proposed transactions are not related party transactions and none of the company's promoters/promoter group is related to JCML.
On a consolidated basis, net profit of Delta Corp rose 12.94% to Rs 50.53 crore on 26.91% rise in net sales to Rs 205.81 crore in Q3 December 2018 over Q3 December 2017.
Delta Corp is engaged in casino (live, electronic and online) gaming industry in India. The company, along with its subsidiaries, currently own and operate casinos in Goa and Sikkim. It has also ventured into the fast-growing online gaming space through its acquisition of Gauss Networks, which operates the online poker site 'Adda52.com'.
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