Delta Corp's Entertainment City

On September 1, The Investment Promotion Board (IPB) cleared several projects including the CMM Logistics Park and the Entertainment City by Delta Corp at Dhargal. For starters, Delta Corp currently operates in the gaming, hospitality and online skill gaming segment. It has various casinos in Goa, Sikkim, Daman, Nepal as well as online through their acquisitions like ‘Adda52.com’. It is the largest gaming company in India. They are the only listed company in the casino gaming with 2000+ live gaming positions. They have also managed to capture 55% of market share in the organized casino market.

The board had met under the chairmanship of the Chief Minister. They approved seven out of 11 discussed projects. They rejected one project and kept 3 of them on hold and were deferred. The Minister of Industries also talked about the CMM Logistics Park and the Entertainment City at Dhargal.

And soon after these announcements, it was very clear that Delta Corp will benefit a lot from this. The shares of Delta Corp saw a sharp rise in the price. The share price has also increased by more than 20% in just a few days. The share also reached its 52-week high of 217.45 on 2 September 2021 and the closing price as on that date was 208.90. The share will also be added to National Stock Exchange’s October F&O Segment. The company’s shares also got listed in the A-List of the Bombay Stock Exchange (BSE).

The company is also expected to perform exceptionally well once COVID restrictions are lifted. They have already resumed operations of Casinos in Sikkim. The company has been able to grow at a higher rate than the industry while increasing its market share in the last 5 years.

The company is almost debt-free which also displays a positive aspect for the future prospects of the company as it has very few obligatory payments. It will be really interesting to see how the management of Delta Corp uses this CMM Logistics Park and the Entertainment City project to boots its revenue and also how they open up their business right after COVID restrictions are lifted.

Thank you.

Regards,

Ankur Shukla (Section P),

Kautilya,

IBS Mumbai.