- The price per share of Saregama as on March 7, 2020 was Rs 199
- The price per share jumped to Rs 5068 on April 1, 2022
- Strong rise in shares due to news of de-merger of distribution business
new Delhi. In this part of the world, moments of relaxation are found by listening to songs. On the other hand, if you are fond of listening to old songs, then your collection cannot be complete without Saregama. If we talk about 70s to 80s, then our parents had all those cassettes of Saregama which had more than one evergreen songs. Then Saregama launched Caravan. Today you will find caravans in every house. But do you know that if you had bought the shares of Saregama India even two years ago, you would have become a millionaire. Yes, the company’s stock has increased from Rs 199 to Rs 5000 in just two years.
Gave a bumper return of 2400% in two years
If we look at the share of Saregama, then on March 27, 2020, the price per share of the company was Rs 199. The phase that has started from there is taking the name of stopping. On April 1, 2022, the price per share has jumped to Rs 5068. That is, in the last two years, the company’s stock has given a bumper return of 2400% to the investors. In the last five days alone, investors have got about 14% return from this stock.
Why did the stock rise sharply?
The reason for the strong rise in the company’s stock is the thousands of copyrights of old songs. Because of this the company’s business model is quite attractive. Along with this, the company Saregama India has announced the separation of its distribution business. The board of the company has approved this de-merger. The news of de-merger of distribution business led to a sudden increase in the buying of shares of Saregama India. Research firm ICICI Securities says that only digital distribution has been demerged. Caravan’s business will continue to be with Saregama India. This means that the distribution company will have the non-exclusive right to sell the Caravan on the e-commerce platform. Due to this, there has been a tremendous increase in the shares of the company in the recent times. Under the de-merger, the existing shareholders of Saregam India will get two shares of the distribution company Digidrive Distributors Limited for every one share.