Delta Corp Approves Rs.125 Crore Share Buy-Back Plan

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 , 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, throug⭕h 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 a🦩s 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 ha🅘s 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 ꧒the 21-day total lockdown announced by the Indian government.

Whi𓄧lst 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.