Shares of Delta Corp rose nearly 3 percent on Wednesday after the online gaming and casino company reported a sharp improvement in its operational performance.
The stock came off its intraday high of Rs 184.25 after the company's shares were put under the Futures and Options trade ban by the NSE on Wednesday as securities have crossed 95 percent of the market-wide position limit.
This tapered some of the optimism over strong earnings performance and a final goods and services tax rate on online gaming and casinos may also play spoilsport.
At 1244 IST, shares of Delta Corp were trading 1.4 percent higher at Rs 181.95 on the BSE.
Also read:
The final report from the Group of Ministers on Goods and Services Tax (GST) for online gaming and casinos is likely to come before August 10. The last meeting was inconclusive. However, as per an official, GoM members are all on board with regard to levying 28 percent GST on all three sectors — online gaming, casinos and race courses; which components will be taxed is the question the GoM is grappling with.
Delta Corp's online poker and rummy gaming firm Deltatech Gaming has filed its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) to raise funds through a Rs 550 crore initial public offering (IPO).
The company’s consolidated operating margin has expanded by 540 basis points sequentially to 35 percent in the June quarter. On a consolidated basis, its sales for the June quarter came in at Rs 250.27 crore as compared to Rs 218.32 crore in the March quarter and Rs 75.87 crore posted a year ago. Profit stood at Rs 57.13 crore against Rs 48.11 crore in the previous quarter and Rs 28.93 crore-loss a year ago.
