Shares of Delta Corp Ltd. gained as much as 4 percent on Friday to reclaim the level of Rs 200 for the first time since July 11. That was the day when the GST Council had increased the tax rate to 28 percent on the online gaming, casinos and horse racing industry.

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The stock made an intraday high of Rs 204.45, extending its gains for the fifth day in a row. The last instance of Delta Corp shares gaining for five days in a row are in April 2023.

This five-day surge in the shares of Delta Corp has added nearly Rs 5,000 crore to its market capitalisation.

Delta Corp Ltd is the only listed company engaged in the casino (live, electronic and online) gaming industry in India.

The stock tanked around 23 percent on July 12 to close below the Rs 200 level for the first time since April 28, 2023, after the announcement by the GST Council to increase the tax on online gaming industry to 28 percent.

Its market capitalisation fell to a low of Rs 4,803 crore in two days after the announcement due to a 27 percent correction in the stock.

Delta Corp Ltd while announcing its first quarter financial results this week had stated that it was confident and hopeful that a mutually amicable and favourable outcome will emerge following the representations and concerns being raised by both online gaming and casino industry, coupled with investor community and some states.

The GST Council in its meeting on August 2 is expected to take a call on the modalities of the 28 percent GST imposition on online gaming segment amid concerns raised by the industry.

Delta Corp registered its highest consolidated gross revenue of Rs 338 crore in the June quarter.

The Casino Gaming Segment achieved an operating profit or EBITDA of Rs 101 crore, reflecting a margin improvement over 1,000 bps on a sequential basis and over 100 bps year-on-year.

Shares of Delta Corp are trading 2 percent higher at Rs 200. The stock is still below the closing levels of July 11.