Shares of Saregama India were locked in the upper circuit of 5 per cent today after its board approved demerger of the entire distribution division.
Saregama India stock opened with a gain of 4.38 per cent at Rs 4800 today against the previous close of Rs 4598.55. Later, the stock rose to an intraday high of 5 per cent to Rs 4,828.45 on BSE. The large cap stock has gained 10.89 per cent in the last 3 days.
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Saregama India stock is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock surged 203.5 per cent in a year but lost 8 per cent in 2022. Total 1,225 shares of the firm changed hands amounting to a turnover of Rs 60.91 crore. Market cap of the firm rose to Rs 9,309 crore.
“The demerger applies to the sale of all its physical products, including Carvaan, on digital marketplaces along with identified non-core assets (including investment(s) in publication business) and other activities and/ or arrangements incidental or relating thereto . The online marketplace has a lot of promise, and the abilities obtained by the demerged company recently can be used to manage end-to-end distribution activity, with the ability to add a lot more products,” said Saregama.
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The demerged company plans to demerge its e-commerce distribution business into the resulting company, which will, among other things, unlock the value of each of the businesses for the demerged company’s shareholders, attract investors, and provide better capital access flexibility, according to the company.
Saregama India reported a 37.4 per cent rise in Q3 net profit at Rs 43.40 crore against net profit of Rs 31.58 crore in the December quarter of previous fiscal. Sales gained 12.27 per cent to Rs 150.34 crore in the last quarter against Rs 133.91 crore in sales in the corresponding quarter of the previous fiscal.
