BackDelta Corp shares slump 15%, touch 52-week low on ₹16,822-crore tax demand
Delta Corp shares slump 15% as government demands ₹16,822 crore in taxes for July 2017 to March 2022 period.
PremiumDelta corp shares slumped 15% and touched 52-week low on Monday after the company disclosed that it had received a government notification requiring it to pay a tax of ₹16,822 crore for the period spanning July 2017 and March 2022. Delta Corp share price opened at intrday high at ₹157.75 apiece on BSE. Delta Corp stock price touched 52-week low at ₹149.
A notice for ₹5,682 crore has been filed against three of the company's subsidiaries, Casino Deltin Denzong, Highstreet Cruises, and Delta Pleasure Cruises, the company stated in an exchange filing. The company received notification to pay an alleged tax liability of ₹11,140 crore, along with interest and penalty, for the period from July 2017 to March 2022, according to another exchange filing. If the company fails to do so, a show-cause notice will be issued to the company.
The amount demanded in the DG Notice is based, among other things, on the total gross bet value of all the games played at the casinos during the pertinent period, as stated in an exchange filing.
According to the exchange filing, the company and its subsidiaries have been legally advised that all the above notices and the tax demands are arbitrary and contrary to law, and the Company and its subsidiaries will pursue all legal remedies available to them to challenge such tax demands and related proceedings.
Exciting news! Mint is now on WhatsApp Channels 🚀Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!
On the technical front, as per trendlyne data, Delta Corp stock price fell 17% and underperformed its sector by 21.2% in the past year.
Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One said that Delta Corp stock has consistently shown poor performance, and today we witnessed a significant gap down in its opening price, accompanied by continued selling pressure. As of the time of writing, the stock has experienced a 15% decline. It has breached its lowest swing point from the previous year at 160, which is not a positive sign for bullish sentiment.
“It's advisable to exercise caution and avoid attempting to buy into a declining market, as the stock may continue to weaken in the short term. If we consider support and resistance levels, the next support is at 123, while resistance is at 155," added Bhosale.
Also Read: Sensex Today Live | Share Market Updates: Sensex, Nifty flat; Delta Corp, Religare slip
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
