Delta Corp invests Rs 999.9 mn in Peninsula Land

01 Dec 2023 CW Team

The Board of Directors at Delta Corp has approved the subscription of 1,50,00,000 equity shares with a face value of Rs 2 each, at an issue price of Rs 44. This amounts to a total cash consideration of Rs 660 million. Additionally, 77,27,000 CCDs with a face value of Rs 44 each, convertible into one fully paid-up equity share of PLL (with a face value of Rs 2), will be issued for a total cash consideration of Rs 33,99,88,000. The conversion of CCDs is scheduled for April 16, 2025.

Delta Corp, in light of the deferred flagship project in Dhargalim, Goa, and considering its free reserves and cash flows, identifies a compelling opportunity for long-term growth in the sector. As the majority stakeholder, Delta Corp, through its joint venture (JV) with PLL, plans to undertake projects primarily in Mumbai and Goa while adhering to its debt-free philosophy.

The allotment of equity shares and CCDs is expected to be completed by January 30, 2024. Following the preferential issue of equity shares, Delta Corp will hold 4.86% of the post-issue paid-up share capital of PLL. After the conversion of CCDs, the company anticipates holding an additional 2.44% of the fully paid-up share capital of PLL.

Rajeev Piramal, Vice Chairman and Managing Director of Peninsula Land, expresses confidence in PLL's strategic vision, emphasising the execution of projects and debt reduction through operational excellence and robust corporate governance protocols. Moreover, a proposed joint venture between Delta Corp and PLL, with a capital outlay of Rs 2.5 billion, is expected to further Delta's expansion into the real estate sector. Delta will be the majority stakeholder in this joint venture, with PLL serving as the development manager.

Delta Corp, a company specialising in the operation of casinos and hotels, has recently invested Rs 99,99,88,000 in Peninsula Land (PLL). The investment involves the issuance of 1,50,00,000 equity shares and 77,27,000 Compulsory Convertible Debentures (CCDs) by PLL at a price of Rs 44 per share. The Board of Directors at Delta Corp has approved the subscription of 1,50,00,000 equity shares with a face value of Rs 2 each, at an issue price of Rs 44. This amounts to a total cash consideration of Rs 660 million. Additionally, 77,27,000 CCDs with a face value of Rs 44 each, convertible into one fully paid-up equity share of PLL (with a face value of Rs 2), will be issued for a total cash consideration of Rs 33,99,88,000. The conversion of CCDs is scheduled for April 16, 2025. Delta Corp, in light of the deferred flagship project in Dhargalim, Goa, and considering its free reserves and cash flows, identifies a compelling opportunity for long-term growth in the sector. As the majority stakeholder, Delta Corp, through its joint venture (JV) with PLL, plans to undertake projects primarily in Mumbai and Goa while adhering to its debt-free philosophy. The allotment of equity shares and CCDs is expected to be completed by January 30, 2024. Following the preferential issue of equity shares, Delta Corp will hold 4.86% of the post-issue paid-up share capital of PLL. After the conversion of CCDs, the company anticipates holding an additional 2.44% of the fully paid-up share capital of PLL. Rajeev Piramal, Vice Chairman and Managing Director of Peninsula Land, expresses confidence in PLL's strategic vision, emphasising the execution of projects and debt reduction through operational excellence and robust corporate governance protocols. Moreover, a proposed joint venture between Delta Corp and PLL, with a capital outlay of Rs 2.5 billion, is expected to further Delta's expansion into the real estate sector. Delta will be the majority stakeholder in this joint venture, with PLL serving as the development manager.