Delta Exits Nepal Casino Business to Invest in Real Estate

The ₹80 Crore Transaction to be Completed by 8 March, 2024

After the company’s President and newly appointed Chief Financial Officer (CFO) Anil Malani spoke broadly in January about going back to the company’s roots and the real estate business, India’s single publicly listed casino operator Delta Corp Ltd. announced on the 20th of February a ₹80 crore divestment through the sale of its foreign business in Nepal in a transaction set to be finalized shortly by the 8th of March this year.

Delta is selling its wholly owned subsidiary Caravella Entertainment Private Limited (CEPL), which holds Delta’s majority stake in the Deltin Casino International casino in Nepal’s capital, Kathmandu, to the Purchasers Kolkata-based Ability Games Ltd. and Goa-based Ashtek Consultancy Private Ltd.

“The divestment represents an enterprise value of ₹ 80 crores comprising of ₹ 18 crores of parent debt and ₹ 62 crores of equity value on a nominal investment of ₹ 1 lakh equity,” as stated by Delta’s corporate filing pursuant to Regulation 30 of the Securities and Exchange Board of India (SEBI).

“The stake sale aligns with DCL’s vision to optimise its portfolio and enhance shareholder value,” the filing added.

Less than three months ago, Delta announced a ₹100 crore majority share investment in a joint venture with Peninsula Land, part of the Ashok Piramal Group, to lift a ₹250 real estate project.

“Today, India’s real estate sector is poised for growth and presents attractive opportunities to businesses. The industry is consolidating as regulations increase, demand grows, and customers increasingly seek established and trusted brands. Via this strategic venture with PLL, Delta is perfectly positioned to take advantage of this new phase of growth in India’s realty space,” Jaydev Mody, Chairman of Delta Corp’s Board of Directors, commented.

Delta Corp, acting through its wholly owned subsidiary Marvel Resorts Private Limited (MRPL), is also repurposing a residential building project into a resort hotel in Miramar, Panaji, Goa.

The Delta Corp started its existence in 1990 with business in textiles and real estate consultancy. In 2007-2008, the company ventured into some real estate endeavors in Nairobi, East Africa, and in 2013-2014, it “made a profitable exit from the real estate business,” as stated on Delta’s corporate website.

The decision to go back to the real estate roots has been taken on the background of troubles with Delta’s main business in gaming, characterized by a 59.34% Y-o-Y decline in profits for Q3 FY2024 caused by the recent hike in GST over money games and GST evasion allegations worth more than ₹23,000 crore.

Caravella Entertainment and the Departing Assets

Caravella Entertainment, formerly called Caravela Casino Goa, was incorporated on 23 September 2010 with an authorized share capital of ₹100,000. The company is one of the 13 subsidiaries 100% directly or indirectly owned by the mother company, Delta Corp Limited.

CEPL, in turn, owns 89.286% of Deltin Nepal Private Limited (DNPL), the operator of the Deltin Casino International in Kathmandu’s 235-room 5-star Marriott Hotel.

The casino area features 220+ gaming positions and a separate VIP area spread over 15,000 sq. ft. (1,394 sq. m). Like in other Delta Corp-operated casinos, offered tables include Roulette, Blackjack, Craps or Dice, Baccarat, Pontoon, 5-Card Draw Poker, and 3-Card Poker.

Delta Corp had been working on plans to open a casino in Kathmandu since October 2017, and the Deltin Casino International was officially opened in February 2020. After the sale of Caravella Entertainment, the casino will keep the rights to use Deltin Casino International and related brands for a period of two years.

Top Influencers Back Up Delta’s Adda52 Poker Platform

In the meantime, the main platform in Delta Corp’s online division – poker site Adda52, announced it had attracted top influencer support in the face of TV show star Karishma Tanna for the Adda52 Online Poker Series (AOPS), which took place between the 27th of January and the 18th of February this year with active participation from players across India.

Tanna joined Arjun Bijlani and Krystle D’Souza on the AOPS team of brand ambassadors, who had previously included the likes of Ali Fazal, David Warner, Chris Gayle, and Salim Merchant.

“While picking up rapidly, Poker is still relatively nascent in India. Our partnership with distinguished celebrities like Karishma, Arjun, and Krystle helps us in our mission to make the game of poker mainstream in India and in underscoring poker’s potential to sharpen cognitive abilities,” Delta Corp’s Chief Marketing Officer (CMO) Joydeep Mukherjee commented.