Saregama India Limited witnessed a 5.2% rise in its share price during Tuesday's trade, with an intraday high of ₹499.5 on the Bombay Stock Exchange (BSE). In comparison, the BSE Sensex dipped by 0.20%, closing at 79,945.89. Saregama's market capitalisation reached ₹9,495.87 crores following the announcement.
This surge in share price came after Saregama increased its stake in its subsidiary, Pocket Aces, from 51.82% to 53.51%. This strategic move has garnered attention from those focusing on share market investment.
Saregama invests over ₹15 crore in Pocket Aces
Saregama invested over ₹15 crore by subscribing to an additional 25,975 fully paid-up shares of Pocket Aces, offered via a rights issue. Each share had a face value of ₹10. This share market investment highlights Saregama's intent to strengthen its foothold in the digital entertainment segment.
This acquisition is seen as a strategic step to tap into the rapidly growing youth-oriented content market, creating new opportunities for share market investment in the media and entertainment sector.
Pocket Aces: A digital content powerhouse
Pocket Aces, now a majority-controlled subsidiary of Saregama, is a leading digital content creator and publisher. Its IP catalogue includes over 3,000 content pieces, ranging from web series and sketches to music videos and reels. The company operates popular platforms such as FilterCopy, Nutshell, and Gobble, releasing over 30 pieces of content daily.
The company also excels in talent management through its arm, Clout, which manages over 100 digital creators. Pocket Aces' long-form studio, Dice Media, has produced relatable web series for platforms like Netflix, Hotstar, and Amazon, making it a valuable asset for Saregama's share market investment strategy.
Saregama's strategy to leverage Pocket Aces
Saregama aims to utilise Pocket Aces' extensive distribution network, which reaches over 95 million followers. This acquisition aligns with its goal to popularise its vast music library among audiences aged 18-35.
The synergy between Saregama and Pocket Aces is expected to enhance their artiste management, influencer collaborations, and long-format video content production, further boosting their appeal for share market investment.
Saregama's legacy and market performance
Saregama, one of India's oldest music labels, is recognised for its vast collection of Indian music spanning genres like classical, devotional, film, and contemporary music. Over the years, it has expanded its offerings to include digital streaming and audio products like the Carvaan portable music player.
In the last year, Saregama's shares have risen by 30.5%, outperforming the Sensex, which grew by 21% in the same period.
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