Delta Corp shares in focus as Ashish Kacholia sells shares in bulk deals

Delta Corp Ltd, which has recently received tax notices amounting to Rs 16,822 crore from the Directorate General (DG) of GST Intelligence, will be in focus on Tuesday morning after seasoned investor Ashish Kacholia sold 15,00,000 shares in the company at an average price of Rs 144.65 via bulk deals. As per June quarter data, Kacholia was not among shareholders with over 1 per cent stake in the casino operator. There is no history of Kacholia owning significant stake in Delta Corp earlier, as per the corporate database AceEquity.

Shares of Delta Corp have been on a losing streak for six sessions now. The company recently received one tax notice for Rs 11,140 crore and another amounting to Rs 5,682 crore against three of its subsidiaries.

Late billionaire investor Rakesh Jhunjhunwala and his better half Rekha Rakesh Jhunjhunwala were once shareholders in the casino operator but they sold stakes in the company in 2022. They are no more among shareholders with over 1 per cent stake in Delta Corp. Seasoned investor Mukul Agrawal, however, increased his stake in the company to 3,300,000 shares in June quarter from 3,000,000 shares in March quarter. He held 1.23 per cent stake in the company ni the first quarter against 1.12 per cer cent in the Mach quarter.

Delta Corp, in exchange filings, said the amount claimed in the DG Notice is based on the gross bet value of all games

played at the casinos during the relevant period. "Demand of GST on gross bet value, rather than gross gaming revenue, has been an industry issue and various representations have already been made to the government at an industry level in relation to this issue," it said.

Delta Corp said the casino operator was legally advised that the DG Notice and the tax demand is arbitrary and contrary to law, and that it would pursue all legal remedies available to it to challenge such tax demand and related proceedings.

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