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Pocket Aces is a Youth-focussed digital content creator and publisher, boasts of an IP catalogue of over 3,000 content pieces ranging across web series, sketches, music videos and reels on its channels FilterCopy, Nutshell and Gobble. Revenue from operations for financial year 2023 was Rs 104.39 crore.
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.
In first tranche, Saregama India will acquire 51.8% shares for approximately Rs 174 crore and in a second tranche, it will acquire around 41% stake in next 15 months at pre-agreed multiples. The transaction is an all-cash deal.
The firm will invest an amount of Rs 15 crore by way of primary subscription of 25,974 shares of Pocket Aces. The said subscription is expected to be completed within 2 months from the completion of acquisition of first tranche.
The company will acquire 6,86,624 shares and other securities of Pocket Aces, by way of two tranches of secondary acquisition and primary subscription, together representing 92.61% of Pocket Aces.
The first tranche of the acquisition is expected to be completed within 2 months from the execution date and second / subsequent tranches of the acquisition is expected to be completed within 18 months from the completion of acquisition of first tranche.
Avarna Jain, vice chairperson Saregama, said, “This acquisition signifies the confluence of tradition and innovation. While we have always been leaders in the realm of music and media, this partnership with Pocket Aces will add new dimensions to our business as we tap into the burgeoning young digital audiences.”
Saregama India, formerly known as The Gramophone Company of 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% 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 rose 3.8% to Rs 43.48 crore in Q1 FY24 as compared with Rs 41.87 crore in Q1 FY23. Net sales declined 1.6% year on year to Rs 163.34 crore in Q1 FY23.
The scrip fell 0.31% to Rs 367.95 on the BSE.
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