Delta Corp shares spike on fake viral news, Company issues clarification

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The stock of Delta Corp, India’s leading casino operator was subjected to manipulation today by a piece of fake viral news. The news went viral on social media this afternoon that Delta group received the long-awaited approval for the operation of electronic amusement and slot machines in Daman and Diu. The company owns a 5-star hotel ‘The Deltin’ in Daman and Diu.

Delta share spiked to a day high of INR 230 on account of the fake news. A fake notification from Daman and Diu administration said a license is issued to Deltin Hotel, Daman for electronic amusement/slot machine games under category-A for 12 months till September 8, 2023

Aakash Mathur, general manager, of Deltin Hotel, Daman was unaware of the development. “I am unaware of any such development concerning the casino license approval for our hotel,” he was quoted by The Blunt Times.

Soon the Company gave an intimation to the stock exchanges stating neither the Company nor its subsidiaries received any approval for the operation of electronic amusement/slot machines.

Deltin Group currently has two offshore casinos and one 5-star hotel with a land-based casino in Goa and one land-based casino each in Sikkim and Nepal.

Delta Corp, which started as a textile and real estate consultancy company incepted in 1990, has emerged as one of India’s largest casino, online gaming and hospitality companies. It acquired the nation’s leading online poker site Adda52 in 2017 which has filed draft papers for a public offer recently. The draft papers proposed a public offer of INR 550 crores for the online business

According to the financial statements, Deltatech Gaming made INR 137.23 Cr in revenue from operations in FY22, down 11.67% YoY from the INR 155.37 Cr it reported in FY21. Its other income stood at INR 41 Lakhs, down 41% YoY from the INR 69 Lakhs it had reported the fiscal year before. In all, Adda52 registered INR 137.63 Cr in total revenue, down from the INR 155.36 it reported in FY21. Delta Corp earlier said the IPO  proceeds will be used to build a “dedicated war chest” to grow online business.