NEW DELHI: Delta Corp (Delta), which owns and operates casinos and hotels, has made an investment of Rs 99,99,88,000 in Peninsula Land (PLL) which will issue 1,50,00,000 equity shares and 77,27,000 CCDs at Rs 44.
The board of directors of Delta Corp approved subscription of 1,50,00,000 equity shares of face value of Rs 2 per share at an issue price of Rs 44 for an aggregate cash consideration of Rs 66 crore and 77,27,000 – 0% unsecured compulsory convertible debentures (CCDs) of face value Rs 44 each convertible into one fully paid-up equity share of PLL having face value of Rs. 2 on April 16, 2025, for an aggregate cash consideration of Rs. 33,99,88,000.
“Considering that Delta’s flagship project at Dhargalim, Goa has been deferred and given its free reserves and cash flows, the company sees a compelling opportunity for long term growth in this sector. Delta, being the majority stakeholder, through its JV proposes to execute projects mainly in Mumbai and Goa and will continue with its philosophy of running a debt free company,” it said in a media release.
Allotment of equity shares and CCDs is expected to be completed on or before 30th January, 2024. Post preferential issue of the equity shares, Delta Corp will acquire 4.86% of the post-issue paid up share capital of PLL. Post conversion of CCDs, the company is expected to hold additional 2.44% of the fully paid up share capital of PLL.
Rajeev Piramal, vice chairman and managing director of Peninsula Land, said, “Over the past few years, Peninsula Land has executed a clear strategic vision to execute projects and reduce debt through operational excellence and strong corporate governance protocol.”
A joint venture is also proposed to be established between Delta & PLL with a capital outlay of Rs 250 crore where Delta will be a majority stakeholder. This joint venture will help Delta expand into the real estate sector. PLL will be the development manager of this joint venture.
