Shares of Saregama India rallied 6 percent to hit the day’s high of Rs 393 apiece on September 29 on the BSE after it acquired a majority stake in digital entertainment company Pocket Aces. The S&P BSE Sensex was up 109 points or 0.1 percent to 65,618 levels, as of 9:35am.
So far this year, this midcap music label has jumped 5 percent, as against 7 percent rise in the Sensex. The stock touched a 52-week high of Rs 476 per share on July 27.
Follow live blog for constant market updates
In an exchange filing on September 28, the company said that it will purchase 52 percent shares of Pocket Aces for Rs 174 crore, with a clear path to further acquire another 41 percent stake in the next 15 months at pre-agreed multiples. The transaction is an all-cash deal.
“This acquisition will further strengthen Saregama’s strategic ambition to take leadership position in new music across all Indian languages,” the company management said in a press release.
Saregama owns the largest music archives in India, nearly 50 percent of all the music ever recorded in the country. The company has also expanded into other branches of entertainment like publishing, film production, and digital content.
On the other hand, Pocket Aces is a youth-focused digital content creator and publisher, boasts of an IP catalog of over 3,000 content pieces ranging across web series, sketches, music videos and reels on its channels FilterCopy, Nutshell, and Gobble.
“This partnership with Pocket Aces will add new dimensions to our business as we tap into the burgeoning young digital audiences,” Avarna Jain, vice-chairperson of Saregama, said.
Over the last four years, Pocket Aces saw revenues record a 34 percent compounded annual growth rate (CAGR). In FY23, its revenue from operations stood at Rs 104 crore.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
