"The company will issue an ADR of $50-70 million within the next six-nine months to fund two major acquisitions," vice-chairman Sanjiv Goenka said.
Although name of the two labels are not known, the required size of the fund indicates that the acquisitions will be big. Earlier, it had acquired three labels namely Sargam, Pyramid and Sangeeta.
GCIL has so far raised Rs 120 crore through a preferential allotment of shares of which it utilised Rs 40 crore for retiring debts and Rs 5 crore for purchasing a music company named ARI.
The balance is being used to offer voluntary retirement option to 220 employees to pare 20 per cent of its workforce.
The company plans to adopt the US GAAP norms from the next financial year as a precursor to get listed either on the New York Stock Exchange or Nasdaq.
Sanjiv Goenka said the company has also decided to pass an enabling resolution pertaining to the buyback of shares at the forthcoming annual general meeting (AGM) on September 1.
A resolution pertaining to the rechristening of the company as Saregama India Ltd will also be placed at the AGM.
With the change in name, the GCIL's entire business including its foreign subsidiary Saregama Plc will come under the purview of Saregama India. However, the brand Gramophone will continue to co-exist with HMV and the new one, Saregama.
Actually, the company plans to go for segmentation of music with the three brands. While music representing the new generation, like Indipop, will be marketed under the Saregama brand, the old ones, like devotional numbers of Lata Mangeskar, will be sold under HMV and Gramophone.
GCIL has sold 144 lakh cassettes and CDs in the first four moths of the current year against 95 lakh in the corresponding period previous year. Turnover grew to Rs 53 crore, during the period, from Rs 37 crore.
In the coming months, the company is eyeing to grab a 'good business' from Mohabbatein, for which it paid a one-time royalty payment of Rs 7.5 crore.
In addition, Kasoor, 1-2-ka-4, Na Tum Jano Na Hum are "expected to earn good returns to the company".
