Delta Corp stock up on preferential sale plan

A group of investors, including Mumbai-based high-networth investors Rakesh Jhunjhunwala and Radhakrishna Damani picked up an 11% stake in Delta Corporation Ltd. for Rs2bn. The investors will get equity for Rs1.2bn and will further subscribe to Rs80mn of warrants that can later be converted into stock. Jhunjhunwala will join the Delta Corp. board. India's leading corporate lawyer Zia Mody of AZB Partners Ltd. and her husband Jayadev Mody will invest Rs700mn as part of the promoters' contribution. Both together own 48.40% in the Mumbai-based real estate and hospitality firm.



Shares of Delta Corp rose after the Board approved the preferential allotment of equity shares and warrants at Rs51 per share to the identified investors aggregating to Rs2.85bn. The proceeds are based on assumption that warrants will be converted in full. The stock closed at Rs76, up Rs3.95 from the last close. The Board also approved the issue of additional securities worth up to Rs394.5mn, subject to ICICI Venture exercising the pre-emptive right.