A tax notice and shares of a casino running company crashed, Rs 937 crore lost in 50 minutes

Casino operator Delta Corp Ltd has received a total tax notice of Rs 16,822 crore from the GST Intelligence Directorate. After which there was a huge decline in the company's shares on Monday. This tax notice is from July 2017 to March 2022.

Casino running company Delta Corp has been hit twice. Where the company has received a tax notice of about Rs 17 thousand crore from the GST Directorate. On the other hand, a decline of up to 20 percent was seen in the company's shares on Monday. Due to the fall in the shares, a decline of more than Rs 937 crore has been seen in the company valuation in about 50 minutes. With today's fall, the company's shares have fallen to their lowest level in 33 months. Let us also tell you what kind of share figures of the company are being seen.

Tax notice of about 17 crores

On Friday, casino operator Delta Corp Ltd received a tax notice totaling Rs 16,822 crore from the GST Intelligence Directorate. After which there was a huge decline in the company's shares on Monday. This tax notice is from July 2017 to March 2022. The first notice, worth Rs 11,140 crore, is directly against Delta Corp. The second notice, worth Rs 5,682 crore, has been issued against its three subsidiaries – Casino Deltin Denzong, Highstreet Cruises and Delta Pleasure Cruises.

In an exchange filing issued on Friday midnight, Delta Corp said that this GST notice is based on gross bet value and not gross gaming value. She plans to take legal action to challenge this order. It has also said that such tax demands are not a company-specific problem, but of the entire industry.

Shares fell 23 percent on July 12

The stock had fallen by 23 per cent in a single day in July after the GST Council increased the GST rate on casinos from 18 per cent to 28 per cent. The company suffered a loss of Rs 1,500 crore in market cap due to the fall on July 12, which was more than its full fiscal year 2023 revenue of Rs 1,021 crore. The stock is currently down 20 percent at Rs 140.35. The stock is down 35 percent so far in 2023.

Loss of Rs 937 crore in 50 minutes

According to Bombay Stock Exchange data, today the company's shares opened with a fall at Rs 157.75 and in about 50 minutes, i.e. at 10.05 am, it fell by 20 percent to Rs 140.20. At that time the market cap of the company had come to Rs 3,750.24 crore. Whereas on Friday the company's shares closed at Rs 175.25 and the market cap was Rs 4,687.80 crore. This means that within 50 minutes of the market opening, a loss of Rs 937.56 crore has been incurred.