Saregama on high note

Saregama India is a big star today morning; the stock opened almost 4.5% higher at Rs.4800 and went on to hit the 5% UC of the day at Rs.4828.45, where it now remains frozen.

The stock hit the roof after the Board yesterday approved demerger of entire distribution business of the company, which includes sale of all its physical products including Carvaan on digital marketplaces along with identified non-core assets, which is investment in publication business. 

This demerger would result in unlocking value of each of the business for the shareholders of the demerged entity and enable focussed growth strategy.

The scheme does not involve cash consideration and existing shareholders will receive two fully paid-up equity shares of the resulting company for every one equity share of the demerged company.