This stock tanks 10% after Rakesh Jhunjhunwala sells 57.5 lakh shares

Shares of Delta Corp tanked over 9% today after ace investor Rakesh Jhunjhunwala sold over 5.7 million shares in the firm via bulk deals on Friday. Ace investor Rakesh Jhunjhunwala held 1.15 crore shares or 4.30 percent stake in the company, according to the shareholding pattern in the March quarter last year. Meanwhile, Rekha Jhunjhunwala separately held 3.18 per cent or 85 lakh shares in the company.

The share of the casino chain player hit an intraday low of Rs 166.65, down 9.53 per cent against the previous close of Rs 184.20 on BSE. The midcap stock trades 4.76 per cent away from 52-week low of Rs 162.1.

Delta Corp stock is trading lower than 5-day, 20-day, 50-day, 100-day and 200-day moving averages. The stock has lost 4.76 per cent in a year and fallen 34.69 per cent since the beginning of this year.

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The market cap of the gaming and entertainment firm fell to Rs 4,498 crore on BSE. Total 7.88 lakh shares of the firm changed hands amounting to a turnover of Rs 13.66 crore.

Rakesh Jhunjhunwala sold 57,50,000 shares of the firm at Rs 167.17 on June 17, 2022, according to bulk deals data on BSE.

Earlier, during June 1- June 14, Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala had sold around 75 lakh equity shares of Delta Corp through an open market sale.

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On Friday, Delta Corp stock gained 12 per cent after its arm Deltatech Gaming (DGL) filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering.

The casino chain player reported over 16 per cent fall in profit of Rs 48.11 crore in the last quarter compared to the profit of Rs 57.77 crore in the year-ago period.

Revenue rose 3.30 per cent to Rs 218.32 crore in Q4 against Rs 211.34 crore in the corresponding quarter of the previous fiscal.

However, net profit zoomed 378 per cent to Rs 66.99 crore for the fiscal ended March 2022 against Rs 24.10 crore loss for the fiscal ended March 2021.

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Delta Corp is engaged in the operation of casino. Its segments include real estate, gaming, hospitality and others. The company operates its gaming and hospitality businesses under the DELTIN brand. The company owns three casinos in Goa, including Deltin Royale, Deltin JAQK and Deltin Caravela.

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