The board of music, retail and film major Saregama India has approved the de-merger of its distribution division. Hearing this news, the sudden buying of the share of Saregama India has increased.
Price ran up to Rs 230: On Thursday, the fourth trading day of the week, the share price of Saregama India took an upper circuit on the BSE index. The share price was at Rs 4828.45 with a gain of 5 per cent. The share price increased by Rs 229.90 as compared to a day earlier.
What is the company’s decision: The board of Saregama has approved the de-merger of the entire distribution division of the company. De-merger applies to the sale of all physical products, including caravans, on digital markets. Saregama said the online marketplace has great potential, and the capabilities acquired by the recently detached company can be used to manage end-to-end distribution activity.
What experts say: According to domestic brokerage and research firm ICICI Securities, the share price of Saregama has risen almost 18.7 times in the last five years. The brokerage has set a target price of Rs 4,890 per share. Along with this, it has maintained its hold rating on Multibagger stock. Shares of Saregama have gained over 202 per cent in a span of one year. However, there has been a decrease of about 11 per cent so far in 2022.