The Board of Directors of Delta Corp Limited has approved a plan to buy-back shares of the company as per a regulatory filing by the company.
As per Delta Corp’s update to the stock exchanges, the board of directors at the company meeting held on 28th March, 2020 approved a proposal to buy-back upto 1.25 crore shares of the company, representing 4.61% of the total paid-up capital of the company, at a price not exceeding Rs. 100 per share, through the open market route. As per the last close, the company was trading at Rs. 59.50 on the Bombay Stock Exchange (BSE).
The company has earmarked a total of upto Rs. 125 crores for the purpose of buy-back of shares and the promoters as well as persons in control of the company would not participate in the buyback scheme.
Delta Corp also indicated that it would utilise at least 50% of the total earmarked amount, i.e. at least Rs. 62.50 crores, for the buy-back. The company further announced that a Buy-Back Committee headed by Chairman Jaydev Mody would take all necessary actions and make appropriate announcements relating to the buy-back procedure.
The company has further stated that a public announcement with further details about the buy-back, including the opening and closing dates, would be communicated in due course.
Over the past one month, the company has seen a sharp fall in its stock price, mainly due to the impact of the Covid-19 virus as well as shutdown of all casinos ordered by the Goa and Sikkim government and the 21-day total lockdown announced by the Indian government.
Whilst all of Delta Corp’s offshore and land-based casinos are likely to remain shut at least until 15th April, 2020, the company has stated that the impact of the Coronavirus crisis on its revenues cannot be estimated at the moment.
Besides a buy-back plan to arrest the steep fall in share price of the company, Delta Corp had declared a Rs. 0.75 second interim dividend per equity share earlier this month.