Delta Corp Ltd. (Delta), a publicly listed company which owns and operates casinos and hotels in Goa, Sikkim, Daman and Kathmandu (Nepal), has decided to make a strategic investment of INR 99,99,88,000/- (Rupees Ninety Nine Crores Ninety Nine Lakhs Eighty Eight Thousand only) in Peninsula Land Ltd. (PLL) which will issue 1,50,00,000 equity shares and 77,27,000 CCDs at INR 44/-. Furthermore, a joint venture is envisaged to be established between Delta & PLL with a capital outlay of INR 250 crores where Delta will be a majority stakeholder. This JV will help Delta expand into the sector.
The need for expansion in the real estate sector stems from the fact that Delta has in the past successfully executed several projects and exited profitably coupled with its promoter having over 35 years of experience in this industry. Considering that Delta's flagship project at Dhargalim, Goa has been deferred and given its free reserves and cash flows, the company sees a compelling opportunity for long term growth in this sector. Delta, being the majority stakeholder, through its JV proposes to execute projects mainly in Mumbai and Goa and will continue with its philosophy of running a debt free company.
PLL, a prominent real estate developer, with over 22 years of experience in real estate, 19 successfully executed projects and having 2 under-construction projects and with a pipeline of projects under consideration is a perfect option for a Joint Venture. PLL's strong operational performance in the last five years saw it reduce its debt by over 90%.
Mr Jaydev Mody, Chairman, Delta, stated "Today, India's real estate sector is poised for growth and presents attractive opportunities to businesses. The industry is consolidating as regulations increase, demand grows, and customers increasingly seek established and trusted brands. Via this strategic venture with PLL, Delta is perfectly positioned to take advantage of this new phase of growth in India's realty space".
Mr Rajeev Piramal, Vice Chairman and Managing Director of PLL stated, "Over the past few years, Peninsula Land has executed a clear strategic vision to execute projects and reduce debt. We have demonstrated our commitment to stakeholders and customers. I am thrilled to announce a new phase of growth with Delta that will allow us to unlock the immense value that exists in the real estate sector today".
Shares of Delta Corp Limited was last trading in BSE at Rs. 133.95 as compared to the previous close of Rs. 133.90. The total number of shares traded during the day was 892750 in over 1766 trades.
The stock hit an intraday high of Rs. 135.95 and intraday low of 132.80. The net turnover during the day was Rs. 119764874.00.