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Delta Corp Subsidiary Ventures into New Sectors
Delta Corp's subsidiary, Marvel Resorts, has announced plans to acquire significant stakes in two private companies as part of its ongoing diversification strategy. The subsidiary will purchase 74% of Easymile Parking Solutions and Management Pvt Ltd and 74% of Shanta Infratech Private Limited.
The total investment for both deals amounts to ₹5.7 lakh, with each acquisition costing ₹2.85 lakh. These transactions are slated for completion by May 5, 2026.
Strategic Rationale for Expansion
This move signals Delta Corp's ambition to broaden its business beyond its established gaming and hospitality operations. By entering the parking solutions and real estate development sectors, the company aims to tap into new market dynamics and create additional revenue streams, leveraging subsidiaries for growth.
Company Background and Diversification Efforts
As India's sole publicly listed operator in regulated casino gaming and hospitality, Delta Corp has been exploring various avenues for growth. The company has been investing in expanding its core gaming and hospitality capacity. Recent strategic moves also include realigning its online skill gaming segment through subsidiary Deltatech Gaming and pursuing broader diversification into sectors like real estate via strategic partnerships.
Projected Performance of Acquired Firms
The acquired companies are expected to contribute to future revenue. Easymile Parking Solutions projected a turnover of ₹71.75 lakh for the 2025-26 fiscal year (standalone). Shanta Infratech projected ₹138.63 lakh for the same period.
Key Risks: GST Disputes
However, Delta Corp continues to face significant risks, particularly from ongoing tax disputes. The company is contesting Goods and Services Tax (GST) demand notices totaling ₹16,822 crore, issued in September 2023, which it considers arbitrary. These regulatory pressures have impacted profitability, and new legislation has led to write-downs in its online gaming segment.
What to Watch Next
Investors will be closely monitoring the completion of these acquisitions by the May 2026 deadline. Key focus areas will include the successful integration of Easymile Parking Solutions and Shanta Infratech, the ongoing resolution of the substantial GST disputes and their potential financial impact, and how these new ventures contribute to Delta Corp's overall revenue diversification strategy.