Delta Corp shares tank 8% after ace investor Rakesh Jhunjhunwala and wife trim stakes

Sharp fall in crude oil prices could be a trigger for market rally

The two reduced their stake in Delta Corp to 3.36 percent from 7.48 percent in March. They sold 75 lakh shares between June 1 and June 14, said a Moneycontrol report.

As of March 2022, Rakesh Jhunjhunwala owned 4.3 percent stake in the casino company while his wife Rekha Jhunjhunwala held 3.2 percent stake. The duo owned about 4.6 and 4.8 percent stake, respectively, as of December 2015.

Some fund managers are reading this as a mere profit-taking exercise and have pointed out that Rakesh Jhunjhunwala has also been reducing his stake in other companies like Titan.

On Friday, Delta Corp's stock had soared about 12 percent after the company's online poker and rummy gaming firm Deltatech Gaming filed its Draft Red Herring Prospectus with market regulator Securities and Exchange Board of India to raise funds through a Rs 550-crore initial public offering.

Meanwhile, the council of ministers recently recommended 28 percent goods and services tax (GST) on horse racing, casinos and online games, as per reports. This could have triggered selling in shares of Delta Corp, some market experts said.