Shares of prominent gaming companies, including Delta Corp. and OnMobile Global Ltd., surged on Friday after the Supreme Court of India granted a stay on the proceedings regarding show cause notices (SCNs) issued by the tax department. These notices were linked to the proposed imposition of a 28% Goods and Services Tax (GST) on online gaming companies, which had caused significant concern within the industry. Abhishek A Rastogi, the founder of Rastogi Chambers, representing the gaming companies, stated that this development highlights the dynamic legal and policy landscape for online gaming in India, with the eventual Supreme Court ruling expected to influence the industry's future.

The Supreme Court’s decision to stay the proceedings on all SCNs until the final disposal of the case, now scheduled for a hearing on March 18, 2025, was a relief for the e-gaming industry. The tax department had earlier informed the Court that the notices could become time-barred without this stay. The gaming companies, which had sought the stay to avoid coercive actions from tax authorities, expressed cautious optimism while awaiting the final ruling. The tax demand from these companies is estimated at around Rs 1.50 lakh crore.

Following the announcement, Delta Corp's stock led the market rally with a 6.50% increase to Rs 120.66 per share, while OnMobile Global shares rose by 2.41%, reaching Rs 68.82 per share. Other gaming-related stocks, such as Zensar Technologies, also saw modest gains, while Nazara Technologies bucked the trend with a 1.30% decline in share value. The broader NSE Nifty 50 index was down slightly by 0.02% at 1:14 p.m.