Investors Buy 11% Stake in Delta Corporation

MUMBAI, INDIA (Gaea Times.com) Reports have come out confirming that Rakesh Jhunjhunwala, Radhakrishan Damani and one more investor will be acquiring 11% stake in Delta corporation. The share of the company has shown dramatic increase in the last week. The stock has shown an upward movement from Rs 50 to about Rs 70. The three investors have got in at Rs 51. Analysis is predicting that now a correction will take place and the prices will dip a little. As the investors have got in Rs 51 many people who have brought the share when the news of the investors acquiring 11% stake in the company first came out will book a profit. The share is at a record high with an increase of about 8 to 10 percent in just a week.

Delta corporation is planning to raise a sum of Rs. 285 crore of which 81 crore will be raised through conversion of warrants. The three investors are providing the company with 200 crore. The shares of the company have outperformed the market over the past one month by soaring 57.764% as compared to 8.17% jump by Sensex. The company has only yesterday announced that it has completed the acquisition of equity shares of Advani Pleasure Cruise company and now has a 51% stake in it.

There are chances that with the money the company is raising will be used in the international market in some way. Correction will be seen in the Delta Corporation stocks. A correction of 5 to 10% may be seen but it is being said that such dips should not affect the company as it has a long way to go. Even if a correction of seven rupees takes place the stock is expected to rise eventually.