look news india
Under the demerger scheme, Delta Penland Private Limited will be a wholly-owned subsidiary of Delta Corp and will handle the hospitality and real estate businesses. The company is in the process of converting from a private limited to a public company, pending several approvals.
The demerger will take place under a “comprehensive scheme of arrangement” under Sections 230-232 of the Companies Act, 2013 as well as Section 66 of the Companies Act. The company said it will take 10 to 12 months to get approvals from shareholders, stock exchanges, SEBI, NCLT and other regulatory bodies.
When the plan is implemented, all shareholders of the company will be given one share of DPPL instead of one share of Delta Corp. Thus, all shareholders in DPPL also participate in the same proportion. Shares of DPPL will be listed on the stock exchange, giving shareholders an opportunity to invest in both the companies.
Around 2:03 pm, Delta Corp shares were trading 5 per cent higher at Rs 136 on the NSE. However, since the beginning of the year, Delta Corp shares have fallen nearly 10 per cent, while the Nifty has given a return of 19 per cent. While Delta Corp shares have fallen nearly 5 per cent in the last 12 months, the Nifty has gained 31 per cent during this period.