Delta Corp shares rally 8% amid interim relief from HC on GST notice

Shares of Casino operator Delta Corp Ltd climbed 8 per cent in Wednesday's trade, taking its winning run to the third straight day after the company told stock exchanges that the Bombay High Court's Goa Bench restrained tax authorities from passing a final order on the Rs 16,195-crore GST notice. The stock topped the Rs 140-level, as it jumped 8.23 per cent to hit a high of Rs 140.70 in early trade. The scrip later cut gains and was trading 5.35 per cent higher at Rs 136.95 on BSE. With this Delta Corp shares are down 36 per cent  year-date.

The stock was hit hard recently after the GST Council imposed of 28 per cent tax on online gaming, casinos and horse racing. Add to the worries was the tax notices that Delta Corp and two of its subsidiaries on alleged tax shortfall. The tax demand was made for the period between July 2017 and March 2022. The court would now hear the matter on February 5, 2024.

"Basis a statement made on behalf of the concerned tax authorities, the Hon’ble High Court has directed such authorities not to pass any final orders on the captioned show cause notices without the prior permission of the Hon’ble High Court. Dates have been fixed for completion of pleadings, and the hearing and final disposal of such writ petitions," Delta Corp told stock exchanges.

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Delta Corp got a tax demand of Rs 11,139 crore while its arms Highstreet Cruises and Entertainment and Delta Pleasure Cruise Company received tax notices of Rs 3,290 crore and Rs 1,765 crore, respectively. A total of 3,84,029 small investors owned Delta Corp stocks and accounted for 36.32 per cent stake in the company as on September 30. For the quarter, Casino Delta Corp logged 1.6 per cent rise in consolidated bottom line at Rs 69.4 crore on a flattish top line growth at Rs 270.6 crore.

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