Delta Corp share price was locked in 5% upper circuit in the early trade on March 26 as board of India’s largest casino operator is considering a proposal to buyback equity shares.
The board of directors will meet on March 28 to consider the proposal for buyback of fully paid‐up equity shares of face value of Re 1 each.
The window for trading in the equity shares of the company shall be closed from March 25 to 30, 2020 (both days inclusive).
In recent times, Delta Corp share price was seen reeling under pressure after the two states in which it operates ordered the closure of all casinos to minimize the spread of the COVID-19 coronavirus.
This latest plunge came as the company announced last Tuesday that its Casino Deltin Denzongpa in the state of Sikkim had been ordered to close, effective immediately, until at least April 15 to reduce opportunities for further spread of the coronavirus. The closure order impacted all casinos in the state, along with cinemas, discotheques and fitness clubs.
Sikkim’s order followed a similar edict this weekend in the state of Goa, where Delta operates three floating casinos and one land-based gaming venue. The order, which took effect Sunday at midnight, required all casinos in the state to remain closed until at least March 31.
Although, initially India was spared from major coronavirus outbreak, but it is witnessing gradual pick up in virus infection cases which forced Prime Minister Narendra Modi led government to announce a complete lockdown in the country, effective from Mar 25 to Apr 1 to ensure no further infections occur.
The state government of Goa has sealed its borders forcing the casinos operator to shut its business.
Without international tourists, casinos would have had to rely on ex-pats and residents of other Indian states who are already within Goa’s borders for customers.
Ironically, Delta started the month off with some good news, as the Goa’s Captain of Ports Department had granted in-principle approval for the company registering a new larger vessel to replace its Deltin Caravello floating casino. The transition still requires the home department approving the gaming license transfer, that is, assuming there’s any gaming industry left in Goa by that time.
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