Shares of Delta Corp Ltd. surged 8%, reaching a day’s high of Rs 142.18 on 25th September after the company announced a significant restructuring initiative.

The board of directors of Delta Corp approved the demerger of its hospitality and real estate businesses into a new entity called Delta Penland Private Limited (DPPL).

The firm operates in several segments, including casino gaming, online gaming, hospitality, and real estate. This strategic move aims to unlock value and create better growth opportunities for both the hospitality and real estate sectors.

Following the demerger, Delta Penland Private Limited (DPPL) will become a wholly owned subsidiary of Delta Corp, responsible for the hospitality and real estate business. The company is also in the process of converting from a private limited company to a public company, pending necessary approvals.

The demerger will occur through a Composite Scheme of Arrangement under Sections 230-232 and Section 66 of the Companies Act 2013. This scheme requires approvals from shareholders, stock exchanges, SEBI, NCLT, and other regulatory bodies, and it is expected to take 10 to 12 months, according to Delta Corp.

Once the scheme is effective, Delta Corp shareholders will receive one share of Delta Penland Private Limited (DPPL) for each share they hold in Delta Corp, ensuring all shareholders benefit in proportion.

DPPL shares will be listed on stock exchanges, allowing shareholders to invest in both Delta Corp and DPPL. The company stated that the scheme will not affect employees, customers, or business partners.

At 12:07 PM, the shares of Delta Corp were trading 4.19% higher at Rs 134.89 on NSE.

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