Saregama rises 5% on acquiring controlling stakes in its arm Pocket Aces

Saregama India shares gained 5.2 per cent in Tuesday's trade and logged an intraday high at Rs 499.5 per share on BSE. In comparison, the BSE Sensex was down 0.20 per cent at 79,945.89. The market capitalisation of the company stood at Rs 9,495.87 crore. 

 

The stock was in demand after the company announced acquiring controlling stake in its subsidiary Pocket Aces to 53.51 per cent from 51.82 per cent.

 

As per the filing, Saregama India Limited invested over Rs 15 crore by way of subscription to the additional 25,975 fully paid up shares of face value Rs 10 of Pocket Aces offered through rights issue.

 

The company believes that acquiring Pocket Aces will add on a whole new dimension of IP and a distribution network of over 95 million followers, which Saregama will leverage to further popularise its music library among the 18-35 audience segment. 

 

It will also create synergies across the artiste & influencer management and long-format video creation businesses of the two companies.

 

Pocket Aces is a youth focussed digital content creator and publisher, boasts of an IP catalogue of over 3000 content pieces ranging across web series, sketches, music videos and reels on its channels FilterCopy, Nutshell and Gobble, and releases over 30 new pieces of content every day. 

 

The company’s talent management arm, Clout, manages over 100 digital talent, and its long-form studio, Dice Media, has created relatable youth-centric web series across OTT platforms such as Netflix, Hotstar, and Amazon.

 

Saregama is an Indian music label and entertainment company, renowned for its extensive music catalog and rich legacy in the entertainment industry. Founded in 1901 as the "The Gramophone Company of India," it is one of the oldest music labels in India. Saregama is widely known for its vast collection of Indian music across various genres, including classical, film, devotional, and contemporary music, with thousands of tracks available in multiple languages. 

 

The company has evolved over the years, expanding its offerings to include digital streaming, music publishing, and even audio products like Carvaan, a portable music player pre-loaded with classic songs. Saregama’s significant presence in the Indian music and entertainment space has made it a key player in preserving and promoting India's cultural heritage through music.

 

In the past one year, Saregama shares have gained 30.5 per cent against Sensex's rise of 21 per cent.