Mumbai-based Delta Corp Ltd, which mainly operates in gaming and hospitality, is looking to divest its entire holding in Advani Hotels and Resorts (India) Ltd, as per a stock market disclosure. The company has appointed Yes Bank as merchant banker for the same.
Delta Corp owned 35.6 per cent stake in Advani Hotels as of September 30, 2014. It did not disclose the details on the divestment plans.
In 2008, Delta Corp had acquired 34.87 per cent stake in Advani Hotels for $36 million.
Founded in 1993, Delta Corp is engaged in textiles, real estate development, gaming and entertainment and hospitality businesses. It is promoted by Jaydev Mody, managing director of Peninsula Land Ltd.
Delta Corp is the only listed company in this space in the country. The promoters hold 41.18 per cent stake in the company while institutions and non-institutions hold 12.92 per cent and 5.90 per cent, respectively.
Delta Corp, through its subsidiaries, owns three casinos (of which two are currently operational) and two hotels in Goa, as well as a luxury hotel in Daman. It holds three of the five gaming licences issued in Goa.
In 2010, Delta Corp bought a stake in Advani Pleasure Cruise Company Ltd from Advani Hotels for Rs 2.45 crore. Since then, it has been operating as a subsidiary of Delta Corp.
Delta Corp's scrip closed at Rs 88.35 each, up 3.21 per cent on the BSE in a strong Mumbai market on Friday.
Advani Hotels operates beach resorts and hotels in India. It owns a 202-key five star hotel named The Ramada Caravela Beach Resort located at Varca Beach in Goa. Ramada is spread over 24 acres with an additional 60,000 sq. ft. of developable area. Ramada also operates a land-based Casino called the Goa Nugget.
(Edited by Joby Puthuparampil Johnson)