The significant plunge in Delta Corp Limited shares, which reached a 52-week low, is a reflection of concerns surrounding a notice for the payment of Rs 6,384 crore related to a tax shortfall received by one of its subsidiaries. Here are some key points to consider:
- Tax Demand Notice: The notice for payment of Rs 6,384 crore is a substantial financial demand that the company and its subsidiary, Deltatech Gaming, must address.
- Total Tax Demand: The total demand from various sources now stands well above Rs 23,000 crore. This is a substantial financial obligation that significantly exceeds the company’s market capitalization, which is currently at Rs 3,749 crore.
- Market Reaction: The market reaction to such a substantial financial demand is evident in the sharp decline in the company’s share price. Investors and traders are concerned about the potential impact of this financial liability on the company’s financial health and future prospects.
- Stock Performance: Delta Corp Limited’s stock has experienced a notable decline over the past month, with a nearly 22 percent drop. This drop reflects investor uncertainty and risk aversion due to the tax demand issues.
- Subsidiary’s Operations: Deltatech Gaming, formerly Gaussian Networks, operates gaming apps such as Adda52 and Addagames. The subsidiary’s operations are an integral part of Delta Corp Limited’s business.
- Resolution Efforts: The company and its subsidiary may explore various options to address the tax demand, including negotiations, legal actions, or seeking regulatory relief. The outcome of these efforts could have a significant impact on the company’s financial future.
