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 2020-21 Annual Report Analysis (Annual Result Update)

Nov 18, 2021 | Updated on Nov 18, 2021

Here's an analysis of the annual report of SAREGAMA for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of SAREGAMA. Also includes updates on the valuation of SAREGAMA.

What Fuelled the Sudden Surge in PVR and Inox Shares Today (Views On News)

Sep 27, 2021

Shares of both multiplex chain operators surged almost 18% to hit their 52-week highs.

8 Penny Stocks with Exceptionally High Promoter Holding (Views On News)

Sep 25, 2021

While high promoter holding is a good thing, there can be rare cases where penny stock promoters use misleading information about the actual valuation.

Shareholder Activism Triggers a 30% Rally in Zee Entertainment Shares (Views On News)

Sep 14, 2021

Zee Entertainment shares zoom after top investors seek CEO and MD Punit Goenka's removal.

Here's Why Affle India Hit 5% Upper Circuit Today (Views On News)

Jul 2, 2021

In the past one year, the company's share price is up 202%. Can it go higher?

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

How to Hit Rs 100 Crore Wealth in Your Lifetime (Equitymaster Wealth)

Nov 15, 2021

This is how you can achieve the ambitious goal of a net worth of Rs 100 crore.

Don't Sell these Stocks if the Market Falls (Profit Hunter)

Nov 17, 2021

These are the 3 types of stocks that you should not sell in a market crash.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Nov 26, 2021 (Close)


  • 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