Gramophone does private placement - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Gramophone does private placement

Feb 26, 2000

Gramophone Company has done a private placement of shares at a price of Rs.1,785 per share. The company has also decided to merge most of its subsidiaries excluding Saregama Plc. UK. Gramophone Company sells its music under the HMV brand name. It has a tie-up with the international major EMI, which holds a 9.9% of the company’s Rs 73 million equity. After the current placement the equity will go up to Rs 80 million.

With the Rs 150 bn media industry getting stupendous valuations the going has been good for the listed companies to make a private placement and the non-listed ones to make an IPO. Gramophone has merely cashed in on the trend.

Off course the company has a library of music rights of almost 10,000 movies. With the music rights of the current blockbusters such as Taal selling for Rs 50 bn, it is the value of Gramophone’s library has led to the re-rating of the stock in the recent times from a level of Rs 330 to over Rs 1800 at present.

The funds raised at present would help the company to retire a part of its debt as well as fund its future acquisition of catalogues and labels. The RPG group (which holds 48% of the company’s equity) has announced that the company plans to double its turnover and triple its net profits over the next three years.

Equitymaster requests your view! Post a comment on "Gramophone does private placement". Click here!


More Views on News

SAREGAMA Announces Quarterly Results (4QFY20); Net Profit Up 41.7% (Quarterly Result Update)

Jun 8, 2020 | Updated on Jun 8, 2020

For the quarter ended March 2020, SAREGAMA has posted a net profit of Rs 228 m (up 41.7% YoY). Sales on the other hand came in at Rs 1 bn (down 15.0% YoY). Read on for a complete analysis of SAREGAMA's quarterly results.

SAREGAMA 2017-18 Annual Report Analysis (Annual Result Update)

Jan 11, 2019 | Updated on Jan 11, 2019

Here's an analysis of the annual report of SAREGAMA for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of SAREGAMA. Also includes updates on the valuation of SAREGAMA.

More Views on News

Most Popular

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

My Top Stock to Buy in this Market Selloff (Profit Hunter)

Sep 22, 2020

The recent correction offers a great opportunity to buy this high conviction smallcap stock.

Can the Nifty Fall to 10,200? (Fast Profits Daily)

Sep 24, 2020

The Nifty has reached an important support level today. If it breaks then we could see further downside.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...


Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms


Sep 28, 2020 02:40 PM


  • Track your investment in SAREGAMA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks