Pocket Aces, being a material subsidiary of the company is a related party of the company. Thus, the investment in Pocket Aces is in the nature of related party transactions and is on an arm’s length basis.
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 popularize 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.
The company has invested Rs 15 crore via subscription to the right issue of 25,975 equity shares of Rs 10 each as offered by Pocket Aces Pictures. Post-acquisition, shareholding in Pocket Aces has increased to 53.51% from 51.82%.
Saregama India is a RPSG group company owning the largest music archives in India and one of the biggest in the world. The ownership of nearly 50 per cent of all the music ever recorded in India also makes Saregama the most authoritative repository of the country’s musical heritage. Saregama has also expanded into other branches of entertainment - film & series production, live events, and music-based consumer products.
The company’s consolidated net profit decreased 6.65% to Rs 44.90 crore in Q2 FY25 as against Rs 48.10 crore posted in Q2 FY24. revenue from operations surged 40.31% YoY to Rs 241.83 crore during the quarter.