Saregama India witnessed a significant surge of 6%, reaching a day’s high of Rs 393 per share on September 29, following its acquisition of a majority stake in the digital entertainment company, Pocket Aces. This positive momentum came amidst a backdrop of the S&P BSE Sensex advancing 109 points, or 0.1%, to reach 65,618 levels at 9:35 am.
Throughout this year, the midcap music label has displayed a 5% increase in its stock value, slightly trailing the Sensex’s 7% rise. The stock had previously achieved a 52-week high of Rs 476 per share on July 27.
In an exchange filing made on September 28, Saregama India announced its acquisition of 52% of Pocket Aces’ shares for Rs 174 crore, with a clear pathway to acquiring an additional 41% stake in the next 15 months at predetermined multiples. This transaction was executed entirely in cash.
The company’s management expressed that this acquisition aligns with Saregama’s strategic vision to establish a leading position in new music across various Indian languages.
Saregama India boasts the largest music archives in the country, encompassing nearly 50% of all music ever recorded in India. Furthermore, the company has expanded its presence into diverse segments of the entertainment industry, including publishing, film production, and digital content.
Conversely, Pocket Aces, a digital content creator and publisher with a youth-focused approach, holds an impressive intellectual property catalog of over 3,000 content pieces spanning web series, sketches, music videos, and reels across its channels FilterCopy, Nutshell, and Gobble.
Avarna Jain, Vice-Chairperson of Saregama, emphasized, “This partnership with Pocket Aces will add new dimensions to our business as we tap into the burgeoning young digital audiences.”
Pocket Aces has witnessed a remarkable 34% compounded annual growth rate (CAGR) in revenue over the last four years, with its revenue from operations in FY23 reaching Rs 104 crore.
