Delta Corp Buyback Review, Offer Details, Price, Dates, Size & more

In this article, they will discuss about Delta Corp Limited Buyback offer, buyback price, buyback size, Delta Corp Buyback record date, company financial, buyback necessity and its impact on company.

Delta Corp Limited Buyback Details

Buyback TypeOpen Market
Opening DateApril 8, 2020
Closing DateOctober 7, 2020
Buyback Offer AmountRs.125,00,00,000
Buyback No. of Shares62,50,000
Face ValueRs.1
Date of Buyback ApprovalMarch 28, 2020
Date of Public AnnouncementMarch 31, 2020
Buy Back PriceRs.100
Buy Back Premium76.06%
Date of Board MeetingMarch 28, 2020

Delta Corp Buyback Opening and Closing Date

The starting and closing date of this buyback is from April 8, 2020 to October 7, 2020.

Delta Corp Buyback Cash Offer

Cash Offer to Buy-back up to 62,50,000 fully paid-up equity shares of the Company of face value of Rs.1 each, being 7.63% and 7.59% of the total paid-up share capital and free reserves of the Company.

Delta Corp Buyback Record Date

The decided record date is [●].

Delta Corp Buyback Price

At a price of Rs.100 per Equity Share.

Delta Corp Buyback Size

At a buyback price of Rs.100 payable in cash for an aggregate maximum amount of Rs.250,00,00,000.

Delta Corp Limited Buyback Acceptance Query

You can check for Buyback Acceptance query here. Just click on the given link and it will redirect you to buyback acceptance query page.


Delta Corp Limited Buyback Acceptance Ratio

Find profit & profit percentage based on various acceptance rate, The profit is calculated based on 1000 shares.

Acceptance RatioTotal Shares AcceptedBuyback PriceBuyback AmountProfitProfit%
20%2001002000048806.46%
40%40010040000976012.91%
60%600100600001464019.37%
80%800100800001952025.82%
100%10001001000002440032.28%

Profit is calculated from March 16, 2020 share price i.e. Rs.75.60 per share of Delta Corp Limited.

According to the above table, if a shareowner applies for 1000 shares of Delta Corp limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.100.00 per share & receive Rs.4880 as profit amount & 6.46% profit percentage on selling these 200 shares back to the company.

Similarly, if the owner gets 60% acceptance of share from the company, the owner will sell 600 shares @ Rs.100.00 & receive a profit of Rs.14640 @ 19.37% profit percentage.


Delta Corp Limited Buyback Overview

Delta Corp BuybackDelta Corp Limited is engaged in the casino (electronic and live) gaming industry in India and operates in the offshore casino gaming space (based on gaming positions and number of vessels).

The Company, along with its subsidiaries, currently own and operate casinos in India in the states of Goa and Sikkim, offering a total of approximately 1,800+ gaming positions in addition to its presence in the online skill gaming space.

The Company holds three of the six offshore gaming licenses issued in Goa and also operates one land based casino in Goa and one in Sikkim. The Company operates Deltin Royale and Deltin JAQK, amongst the country’s two largest offshore casinos, and Deltin Caravela, the only foating hotel with a casino in India.

This Company also owns and operates the Deltin Suites, a 106 room, all-suite hotel with a casino located in Goa. The Company also operates the Casino Deltin Denzong located at the Denzong Regency hotel in Gangtok, Sikkim. We also own and operate The Deltin, a 176 room ve-star hotel in Daman


Company Finances – Delta Corp Limited

The brief audited consolidated financial information of the Company for the last three financial years and limited review financial information for the 6 months ended September 30, 2019 are provided below:

[In Rs. Lakhs]

ParticularsFor the period ended Sept 2019 (Unaudited)12 Months period ended March 31
(Audited)
201920182017
Total Income257.76541.60399.90282.79
Total Expenses (excluding Interest, depreciation)130.09264.77219.380180.79
Finance Cost1.040.804.6313.55
Depreciation and Amortization10.5116.1814.6412.05
Profit before tax116.12259.85160.2376.41
Provision for tax
(including Deferred Tax)
27.4376.5355.6723.79
Profit /(Loss) after tax88.69183.32104.5652.62
Equity Share Capital27.0927.0926.7623.16
Reserves1,963.621,907.951,644.48930.96
Networth1,990.711,935.041,671.24954.12
Total Debt2.2766.50*

Delta Corp Limited Buyback Dates

Date of Board Meeting approving the BuybackMarch 28, 2020
Date of publication of Public Announcement for BuybackMarch 31, 2020
Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders[●]
Buyback Opening dateApril 8, 2020
Buyback Closing dateOctober 7, 2020
Last Date of verification of Tender Forms by the Registrar[●]
Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar[●]
*Last date of Settlement of Bids on the BSE Limited[●]
Last date of return of unaccepted Equity Shares by BSE Limited[●]
*Last date of Extinguishment of Equity Shares[●]

Details of Public Announcement

This public announcement (“Public Announcement”) is made in relation to the Buy-Back of equity shares (as dened below) by Delta Corp Limited (“Company”) from BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”) (together, the “Stock Exchanges”), pursuant to the provisions of Regulation 16(iv)(a) read with Regulation 16(iv)(b) of the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended (“SEBI Buy-Back Regulations”), and contains the disclosures as specied in the applicable provisions of Schedule IV to the SEBI Buy-Back Regulations.


Necessity of Delta Corp Limited Buyback

The Company’s management strives to increase the Equity Shareholders’ value and the Buyback would result in the following benefits, amongst other things:

(a) Reduce the outstanding number of Equity Shares and consequently increase earnings per share (“EPS”) over a period of time;

(b) Effectively utilize available cash; and

(c) Improve key return ratios like return on net worth, return on assets etc. over a period of time


Impact of Delta Corp Limited Buyback on the Company

The Buy-Back is not likely to cause any material impact on the earnings of the Company, except a reduction in the investment income, which the Company could have otherwise earned on the amount distributed towards the Buy- back.

The Buy-Back of Equity Shares will result in a reduction in share capital and consequently, is expected to be EPS accretive. The Company believes that the Buy-Back will contribute to the overall enhancement of shareholders’ value going forward.

Amount required by the Company for the Buy-Back (including the cost of fnancing the Buy-Back and the transaction costs) will be invested out of the internal accruals of the Company or such other source as may be permitted by the Buyback Regulations or the Companies Act.

Salient financial parameters consequent to the Buyback based on the latest audited financial statement of the Company for the half year ended March 31, 2019 are as under:

Parameters (based on audited standalone financial statements for year ended March 31, 2019)Pre Buy-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in Lakhs)
Return on Net worth (%)
Earnings Per Share Basic (Rs)
Earnings Per Share Diluted (Rs)
Book Value per Share (Rs)
Total Debt / Equity Ratio

Basis of Calculating Delta Corp Buyback Price

The Equity Shares of the Company are proposed to be bought back at the Buyback Price, i.e., Rs.100 (Rupees Hundred only) per Equity Share.

The Maximum Buy-Back Price is at a premium of 76.06% and 76.69% over the closing prices on BSE and the NSE i.e. Rs.56.80 and Rs.56.60 respectively, on March 24, 2020 which is one trading day prior to the date on which the notice of the Board Meeting to consider the Buy-Back proposal was intimated to BSE and NSE.

Maximum Buy-Back Price is at a premium of 27.13% and 27.00%, compared to the average of the weekly high and low of the closing prices of the Equity Shares of the Company on the Stock Exchanges during the two weeks preceding the date of the Board Meeting on BSE and NSE respectively.


Source of Funds for the Buyback

 


Delta Corp Limited – Manager to the Buyback

Motilal Oswal Investment Advisors Limited
Motilal Oswal Tower, Rahimtullah Sayani Road, Prabhadevi, Mumbai- 400 025
Tel: +91 22 7193 4380 | Fax: +91 22 7193 4315
E-mail: deltacorp.buyback2020@motilaloswal.com
Investor Grievance E-mail: moiaplredressal@motilaloswal.com
Website: http://www.motilaloswalgroup.com | Contact person: Kristina Dias / Subodh Mallya
SEBI Registration No.: INM000011005 | Validity Period: Permanent
CIN: U67190MH2006PLC160583

Delta Corp Limited – Registrar to the Buyback

Freedom Registry Limited
Share Transfer Agent
Plot No.101,19th Street, MIDC Area, Satpur, Nasik – 422007 | Tel. No.: (0253) 2354032
Email: freedom.nashik@gmail.com | Website: http://www.freedomregistry.in/
Contact Person: Mr. Bhushan Chandratre | SEBI Registration No.: INE000003563

Delta Corp Limited Contact Details

Company Contact Details
Delta Corp Limited
Registered Ofce: 10, Kumar Place, 2408, General Thimayya Road, Pune, Maharashtra 411 001
Corporate Ofce: 2nd Floor, Bayside Mall, Tardeo Road, Haji Ali, Mumbai – 400 034
Tel: +91 22 4079 4700 | Fax: +91 22 4079 4777 | Website: www.deltacorp.in
Compliance Ofcer & Company Secretary: Mr. Dilip Vaidya | E-mail: secretarial@deltin.com
CIN: L65493PN1990PLC058817

 


Delta Corp Limited Buyback News

News 1 – Buyback PDF / Draft Letter of Offer [Download]

News 2 – Delta Corp Ltd – Public Announcement


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